GOLDEN, Colo. & MONTREAL--(BUSINESS WIRE)-- Molson Coors Beverage Company (NYSE: TAP, TAP.A) today announced the company will reinstate its practice of paying regular quarterly dividends, that it has paid off in full the $1 billion 2.1% senior notes due on July 15, 2021 and again reaffirmed its full year 2021 guidance.
“Just over 18 months into our revitalization plan, we continue to execute and advance towards our long-term goal of sustainable topline growth,” said Molson Coors President and CEO Gavin Hattersley. “Because of the work done through our revitalization plan, today we can reaffirm our full year guidance with confidence, while at the same time reinstating a dividend to enhance shareholder value and repaying $1 billion in bonds to continue deleveraging.”
Regular Quarterly Dividend Declared
After thorough benchmarking and analysis, the Molson Coors Board of Directors has made the decision to reinstate a dividend which they believe is sustainable and gives room for future increases as business performance improves. The Board today declared a regular quarterly dividend on its Class A and Class B common shares of US$0.34 per share, payable September 17, 2021, to shareholders of record on August 30, 2021. The quarterly dividend is payable to holders of Class A and Class B common stock of Molson Coors Beverage Company. In addition, Molson Coors Canada Inc. (TSX: TPX.B, TPX.A), today declared a quarterly dividend of approximately CDN$0.42 per share (the Canadian dollar equivalent of the dividend declared on Molson Coors stock), payable September 17, 2021, to its Class A and Class B exchangeable shareholders of record on August 30, 2021. The dividends declared in respect of the Class A and Class B exchangeable shares are eligible dividends for Canadian tax purposes. The Board previously suspended its regularly quarterly dividend payment on May 21, 2020 because of the uncertainty related to the coronavirus pandemic.
$1 Billion in Bonds Repaid
Continuing its commitment to deleverage, Molson Coors repaid in full the $1 billion 2.1% senior notes that matured on July 15, 2021 using a combination of commercial paper and cash on hand.
2021 Guidance Reaffirmed
Molson Coors is again reaffirming its financial guidance for full year 2021, which the Company considers a year of investment:
- Net sales revenue: mid-single digit increase versus 2020 on a constant currency basis.
- Underlying EBITDA: approximately flat compared to 2020 on a constant currency basis.
- Deleverage: We intend to maintain our investment grade rating as demonstrated by our 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.
- 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 will provide its second quarter financial results at its upcoming investor earnings call and webcast on July 29, 2021 at 11:00 am ET.
About Molson Coors
For more than two centuries Molson Coors has been brewing beverages that unite people to celebrate all life’s moments. From Coors Light, Miller Lite, Molson Canadian, Carling, and Staropramen to Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Leinenkugel’s Summer Shandy, Creemore Springs, Hop Valley and more, Molson Coors produces many beloved and iconic beer brands. While the company’s history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle as well. Our ESG strategy is focused on People and Planet with a strong commitment to raising industry standards and leaving a positive imprint on our employees, consumers, communities and the environment. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on Twitter through @MolsonCoors.
About Molson Coors Canada Inc.
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors. MCCI’s Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of Molson Coors, as described in Molson Coors’ annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. Specifically, the trustee holder of Molson Coors’ special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, the Company may also provide oral or written forward-looking statements in other materials the Company releases to the public. Such forward-looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.
Statements that refer to future events or circumstances are forward-looking statements, and include, but are not limited to, the Company’s expectations regarding the payment of future dividends, protections of future financial performance, our anticipated results, debt service capabilities, and timing and amounts of debt and leverage levels. In addition, statements that the Company makes in this press release that are not statements of historical fact may also be forward-looking statements. Words such as “expects,” “intend,” “goals,” “plans,” “believes,” “continues,” “may,” “anticipate,” “seek,” “estimate,” “outlook,” “trends,” “future benefits,” “potential,” “projects,” “strategies,” and variations of such words and similar expressions are intended to identify forward-looking statements.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those indicated (both favorably and unfavorably). These risks and uncertainties include, but are not limited to, the factors discussed in Part I—Item 1A “Risk Factors” in the Company’s 2020 Annual Report on Form 10-K, filed with the SEC on February 11, 2021, and those described from time to time in the Company’s past and future reports filed with the SEC. Caution should be taken not to place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date when made and the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Greg Tierney, (414) 931-3303
Traci Mangini, (415) 308-0151
Marty Maloney, (312) 496-5669