Molson Coors Reports 2020 Fourth Quarter and Full Year Results and Reinstates Guidance for 2021
February 11, 2021
GOLDEN, Colo. & MONTREAL--(BUSINESS WIRE)-- Molson Coors Beverage Company (NYSE: TAP; TSX: TPX) today reported results for the 2020 fourth quarter and full year.
Fourth Quarter Highlights:
Fourth Quarter Net Sales Revenue decreased 7.7% reported and 8.3% in constant currency, primarily driven by Europe and Canada declines resulting from restrictions in the on-premise channel as a result of the coronavirus pandemic.
Fourth Quarter Net Sales Revenue in the U.S., the Company's largest market, increased 1.9%, on a brand volume basis, partially offsetting the Europe and Canada results.
Fourth Quarter U.S. GAAP Net Loss of $1.4 billion ($6.32 per share) primarily driven by $1.5 billion Europe goodwill impairment charge. Fourth Quarter Non-GAAP EPS of $0.40 decreased 60.8%.
Fourth Quarter Underlying (Non-GAAP) EBITDA of $375 million decreased 33.6% in constant currency.
Full Year Highlights:
Full Year U.S. GAAP Net Loss of $949 million ($4.38 per share) primarily driven by $1.5 billion Europe goodwill impairment charge.
Full Year Underlying (Non-GAAP) EBITDA of $2.1 billion decreased 10.0% in constant currency.
Full Year Operating Cash Flow of $1.7 billion, and Underlying (Non-GAAP) Free Cash Flow of nearly $1.3 billion.
Full Year reduction in net debt of $1.1 billion since December 31, 2019.
Outlook Highlights:
Molson Coors is reinstating financial guidance for 2021, including current expectation that our board of directors will be in a position to reinstate a dividend in the second half of 2021.
Strong progress against our revitalization plan, which aims to drive long-term revenue and underlying EBITDA growth.
Molson Coors president and chief executive officer Gavin Hattersley commented, "The revitalization plan we announced in October 2019 positioned our company well to weather the storms of 2020. We built on the strength of our iconic core and in the second half of 2020, we achieved a record high portion of our U.S. portfolio in above premium products. We expanded beyond the beer aisle and we set the stage to build our emerging growth division into a $1 billion revenue business by 2023. We invested in our capabilities while supporting our people and our communities."
Hattersley further explained that the company was able to accomplish all of this even with the challenges presented by the coronavirus pandemic, particularly in Europe where the continued restrictions in the European on-premise channel had a significant impact on the year and quarterly results. “The fact is our plan is working,” added Hattersley. “When you consider what we set out to do under our revitalization plan and what we were faced with during the year, we accomplished an incredible amount in 2020 and that has given us a tremendous springboard for 2021.”
Molson Coors chief financial officer Tracey Joubert said, "We are proud of our resilience and financial performance, including substantial improvements in our balance sheet, as we have navigated through these unprecedented times. While on-premise restrictions, and in particular our Europe business, drove declines in the top- and bottom-line in both the fourth quarter and for the full year, we enter 2021 with improved financial flexibility and have determined to reinstate guidance for the year. While uncertainty and on-premise challenges remain, particularly in Europe, we anticipate 2021 to be a year of both top-line growth, as we begin to benefit from the early successes of our revitalization plan, and of investment, as we continue to drive toward long-term revenue and underlying EBITDA growth."
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