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Molson Coors Canada Inc
Symbol TPX
Shares Issued 11,104,565
Close 2021-07-15 C$ 64.44
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Molson Coors reinstates dividend; reaffirms guidance

2021-07-15 18:59 ET - News Release

Mr. Gavin Hattersley reports

MOLSON COORS BEVERAGE COMPANY REINSTATES THE PAYMENT OF A REGULAR QUARTERLY DIVIDEND; REPAYS IN FULL ITS $1 BILLION 2.1% SENIOR NOTES DUE ON JULY 15, 2021; REAFFIRMS 2021 FINANCIAL OUTLOOK

Molson Coors Beverage Company will reinstate its practice of paying regular quarterly dividends, has paid off in full the $1-billion 2.1-per-cent senior notes due on July 15, 2021, and has 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 top-line growth," said Molson Coors president and chief executive officer 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 it believes 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 34 U.S. cents per share, payable Sept. 17, 2021, to shareholders of record on Aug. 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. today declared a quarterly dividend of approximately 42 cents per share (the Canadian-dollar equivalent of the dividend declared on Molson Coors stock), payable Sept. 17, 2021, to its Class A and Class B exchangeable shareholders of record on Aug. 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-per-cent 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 (earnings before interest, taxes, depreciation and amortization): approximately flat compared with 2020 on a constant currency basis;
  • Deleverage: The company intends to maintain its investment grade rating as demonstrated by its continued deleveraging. The company expects to achieve a net debt to underlying EBITDA ratio of approximately 3.25 times by the end of 2021 and below 3.0 times by the end of 2022;
  • Underlying depreciation and amortization: approximately $800-million;
  • Consolidated net interest expense: approximately $270-million, plus or minus 5 per cent;
  • Underlying effective tax rate: in the range of 20 per cent to 23 per cent 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 a.m. 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. The company's ESG (environmental, social and governance) strategy is focused on people and planet with a strong commitment to raising industry standards and leaving a positive imprint on its employees, consumers, communities and the environment.

About Molson Coors Canada Inc.

Molson Coors Canada (MCCI) is a subsidiary of Molson Coors Beverage. MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC's annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the 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.

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