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Mar 31, 2021
Molson Coors Q1 2021 Earnings Report
Molson Coors' Q1 2021 performance was affected by cybersecurity incident, winter storm in Texas and government restrictions but the company reported meaningful progress on its revitalization plan and reaffirmed 2021 guidance.
Key Takeaways
Molson Coors faced significant challenges in Q1 2021, including a cybersecurity incident and weather-related disruptions, but still made progress on its revitalization plan. The company's iconic core beers gained strength and the above-premium portfolio grew, particularly with the launch of Topo Chico Hard Seltzer. Molson Coors is reaffirming its guidance for the year and expects to reinstate a dividend in the second half of 2021.
Net sales revenue decreased by 9.7% reported and 11.1% in constant currency, driven by lower financial volumes.
U.S. GAAP net income was $84.1 million, or $0.39 per share.
Non-GAAP EPS was $0.01, a decrease of $0.34 per share.
Underlying EBITDA decreased by 20.2% in constant currency to $280 million.
Revenue by Segment
Forward Guidance
Molson Coors expects a mid-single digit increase in net sales revenue on a constant currency basis and approximately flat underlying EBITDA compared to 2020 on a constant currency basis for full year 2021.
Positive Outlook
- Net sales revenue: mid-single digit increase on a constant currency basis.
- Deleverage: The company intends to maintain its investment grade rating as demonstrated by its continued deleveraging.
- We expect to achieve a net debt to underlying EBITDA ratio of approximately 3.25x by the end of 2021 and below 3.0x by the end of 2022.
- Underlying depreciation and amortization: approximately $800 million.
- The board of directors will be in a position to reinstate a dividend in the second half of 2021.
Challenges Ahead
- Uncertainty remains regarding the coronavirus pandemic, including the timing and strength of the recovery.
- Underlying EBITDA: approximately flat compared to 2020 on a constant currency basis.
- Consolidated net interest expense: approximately $270 million, plus or minus 5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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