Molson Coors Brewing Company (NYSE:TAP) Q4 2014 Earnings Conference Call - Final Transcript

Feb 10, 2015 • 11:00 am ET


Molson Coors Brewing Company (NYSE:TAP) Q4 2014 Earnings Conference Call - Final Transcript


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Welcome to the Molson Coors Brewing Company's Fourth Quarter 2014 Earnings Conference Call. Before we begin, I will paraphrase the Company's Safe Harbor language.

Some of the discussions today may include forward-looking statements. Actual results could differ materially from what the Company projects today. So please refer to the most recent 10-K and 10-Q filings for a more complete description of factors that could affect these projections. The Company does not undertake to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date, they are made.

Regarding any non-US GAAP measures that may be discussed during the call and from time to time by the Company's executives in discussing the Company's performance, please visit the Company's website, and click on the financial reporting tab of the Investor Relations page for a reconciliation of these measures to the nearest US GAAP results. Also, unless otherwise indicated, all financial results the Company discusses are versus a comparable prior-year period and in the US dollars.

Now I would like to turn the call over to Mark Hunter, President and CEO of Molson Coors.

Mark Hunter

Thank you, Leanne, and hello and welcome, everybody to the Molson Coors earnings call, and many thanks for joining us today. With me on the call this morning from Molson Coors, we have Gavin Hattersley, our CFO; and Stewart Glendinning, our Canada CEO; Simon Cox, our newly appointed CEO of Europe, congratulations, Simon; Kandy Anand, our international CEO; Sam Walker, our Chief Legal and People Officer; Brian Tabolt, our Controller; and Dave Dunnewald, VP of Investor Relations; and we also have Tom Long, CEO of MillerCoors with us and congratulations, Tom, and best wishes for your retirement announced earlier today.

On the call today, Gavin and I will take you through highlights of our full-year and fourth quarter 2014 results for Molson Coors Brewing Company, along with some perspectives on 2015.

Overall, 2014 was a good year for Molson Coors. We grew net sales in constant currency and gross margin, as well as underlying EBITDA, free cash flow, after-tax income, and earnings per share. Weak consumer demand continued across our largest markets but we made good progress in building a stronger brand portfolio, delivering value-added innovation, strengthening our core brand positions and increasing our share in above-premium. We also continue to improve our sales execution and revenue management capabilities, increase the efficiency of our operations, implement common systems, and focus importantly on profit after capital charge as a key driver for our cash and capital allocation strategy.

In performance headlines for the year, we delivered $1.47 billion of underlying EBITDA and $768.5 million of underlying after-tax income, or $4.13 per diluted share. After-tax income grew 5.7% from a year ago. Excluding foreign currency movement and the termination of the Modelo joint venture in Canada, all of our business achieved improved underlying profit performance in 2014 versus the year before.