Molson Coors Q1 2021 Earnings Report
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.
Molson Coors
Molson Coors
Molson Coors 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%.
- Underlying effective tax rate: in the range of 20% to 23% for 2021.
- The company considers 2021 a year of investment.