NYSE$TAP

Molson Coors Brewing Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$2.26B

Previous: $2.54B-11.1%
EPS (adj)

$0.01

Previous: $0.35-97.1%
Total Financial Volume

16.217

Previous: 18.428-12.0%
Free Cash Flow

$84.1M

Previous: -$117M+171.9%
Net Income

$84.1M

Previous: -$117M+171.9%
Operating Income

$177M

Previous: -$92.5M+291.6%
Gross Profit

$731M

Previous: $624M+17.2%
Cash & Equivalents

$533M

Previous: $666M-20.0%
Total Assets

$27.2B

Previous: $28.5B-4.6%

Revenue & EPS history

Molson Coors · Revenue · Quarterly

$2.26B

Q1 2021-11.1%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Molson Coors · $1.9B total across 2 segments · Q1 2021

  • Americas Segment Net Sales
    $1.69B-5.5%
  • EMEA&APAC Segment Net Sales
    $207M-34.9%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

34 / 72 earnings

Positive

+13.4%

Q3 2018

Best reaction

-17.1%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-0.5%-6.9%
Q4 2025+0.8%-1.8%-18.5%
Q3 2025+1.0%+7.2%+5.4%
Q1 2025-4.6%-2.9%-8.5%
Q4 2024+9.5%+13.4%+11.5%
Q3 2024+5.4%+9.5%+8.2%
Q2 2024+1.9%+3.6%+9.2%
Q1 2024-10.2%-9.0%-16.3%
Q4 2023-1.1%+0.1%+6.2%
Q3 2023+1.4%+1.6%+6.4%
Q2 2023-3.5%-6.4%-9.0%
Q1 2023+7.5%+7.3%+3.1%
Q4 2022+1.8%+3.4%-4.7%
Q3 2022-2.2%+1.5%+9.0%
Q2 2022-9.2%-9.4%-13.9%
Q1 2022-2.0%-2.2%-0.6%
Q4 2021+1.7%+7.4%+11.1%
Q3 2021+1.1%+4.6%+4.5%
Q2 2021-1.3%-0.8%-4.1%
Q1 2021+5.9%+8.8%+12.4%
Q4 2020-10.1%-9.1%-4.8%
Q3 2020+7.1%+17.5%+42.2%
Q2 2020+2.2%+0.1%+3.2%
Q1 2020-15.7%-18.9%-17.8%
Q4 2019-4.6%-4.8%-26.7%
Q3 2019-3.6%-2.0%-7.7%
Q2 2019-7.8%-11.1%-9.8%
Q1 2019-6.7%-5.0%-14.3%
Q4 2018-8.7%-6.8%-7.5%
Q3 2018+13.4%+8.4%+13.0%
Q2 2018+2.7%+3.1%-0.4%
Q1 2018-17.1%-16.8%-14.0%
Q4 2017+8.0%+7.6%+5.9%
Q3 2017-2.2%-2.4%-2.1%
Q2 2017+1.9%+0.7%+0.9%
Q1 2017-3.8%-1.5%+1.6%
Q4 2016+2.9%+5.6%+2.1%
Q3 2016-0.2%-1.0%-8.8%
Q2 2016-1.2%-1.8%+1.6%
Q1 2016+1.4%
Q4 2015-0.0%
Q3 2015+0.2%
Q2 2015+3.7%
Q1 2015+1.4%
Q4 2014-4.4%
Q3 2014+4.1%
Q2 2014+3.7%
Q1 2014+6.2%
Q4 2013+3.6%
Q3 2013-1.9%
Q2 2013+5.4%
Q1 2013-2.5%
Q4 2012-2.4%
Q3 2012-5.3%
Q2 2012+3.9%
Q1 2012-2.5%
Q4 2010+0.2%
Q2 2011+0.2%
Q4 2011+0.2%
Q3 2011-0.3%
Q1 2011-2.2%
Q2 2010-0.7%
Q3 2010+2.4%
Q4 2009-3.0%
Q1 2009-3.0%
Q1 2010-2.1%
Q2 2009+1.7%
Q4 2007+1.7%
Q3 2009-2.9%
Q3 2008-2.9%
Q4 2008-2.4%
Q2 2008-2.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro