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Jun 30, 2021
Molson Coors Q2 2021 Earnings Report
Molson Coors achieved best quarterly top-line growth in more than a decade, driven by revitalization plan and premiumization of portfolio.
Key Takeaways
Molson Coors reported strong second-quarter results, marked by a 17.4% increase in net sales revenue. The company's revitalization plan and premiumization strategy drove growth, with above-premium brand volumes reaching record levels in the U.S. and Europe. Improved financial flexibility allowed for reinvestment in the business, balance sheet deleveraging, and reinstatement of a dividend.
Net sales revenue increased 17.4% reported and 13.7% in constant currency.
U.S. GAAP net income attributable to MCBC was $388.6 million, or $1.79 per diluted share.
Non-GAAP diluted EPS of $1.58 per share increased 1.9%.
Underlying EBITDA of $697.8 million decreased 1.3% in constant currency.
Revenue by Segment
Forward Guidance
Molson Coors expects a mid-single digit increase in net sales revenue and approximately flat underlying EBITDA for the full year 2021 on a constant currency basis.
Positive Outlook
- Maintain investment grade rating.
- Achieve a net debt to underlying EBITDA ratio of approximately 3.25x by the end of 2021.
- Achieve a net debt to underlying EBITDA ratio below 3.0x by the end of 2022.
- Underlying depreciation and amortization: approximately $800 million.
- Underlying effective tax rate: in the range of 20% to 23% for 2021.
Challenges Ahead
- Uncertainty remains regarding the coronavirus pandemic.
- Timing and strength of the recovery is uncertain.
- 2021 is considered a year of investment.
- 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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