Molson Coors Brewing (NYSE: TAP) reported Q1 EPS of $0.01, $0.11 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $1.9 billion versus the consensus estimate of $1.88 billion.

2021 First Quarter Financial Highlights

• Net Sales Revenue decreased 9.7% reported and 11.1% in constant currency, primarily driven by lower financial volumes [in North America decreased 9.4% and Europe decreased 22.0%] partially offset by net pricing growth.
• Net Sales Revenue per hectoliter increased 1.8%, on a brand volume basis, reflecting the continued premiumization of the portfolio as well as higher net pricing.
• U.S. GAAP Net Income of $84.1 million, $0.39 per share. Non-GAAP EPS of $0.01 decreased $0.34 per share.
• Underlying (Non-GAAP) EBITDA of $280 million decreased 20.2% in constant currency.

“Despite these three unprecedented and disruptive events that took place in the quarter, we continued to make progress against our revitalization plan focused on driving long-term top-line growth.

"Our iconic core of beers continue to gain strength. For example, in the U.S., Coors Light finished the first quarter of 2021 with the strongest category share performance since the first quarter of 2017, and Coors Banquet posted its best quarterly brand volume performance in over four years.

"We saw tangible progress on our path to growing our above premium portfolio. Net sales revenue per hectoliter in our largest market, the U.S., was up 4.1%, as we took substantial steps toward our hard seltzer ambition, driven by the launch of Topo Chico Hard Seltzer. Vizzy and Coors Seltzer are top-five hard seltzers with some of Canada’s leading retailers, and we have launched the Three Fold hard seltzer brand in the U.K. and are launching the Wai brand in Central and Eastern Europe in the coming weeks. Blue Moon LightSky also became the top volume share gainer in U.S. craft.

"ZOA Energy Drink has secured a strong retail presence and will begin hitting shelves later in the second quarter of 2021 as we approach Memorial Day, adding real muscle to our beyond beer portfolio.

"And we continued advancing towards our sustainability goals, becoming the first major U.K. brewer to operate entirely by renewable energy. The U.K. also eliminated plastic rings from all of our major packs.”

2021 Outlook

While uncertainty remains regarding the coronavirus pandemic, including the timing and strength of the recovery, we currently expect the following for full year 2021, which we consider a year of investment:

• Net sales revenue: mid-single digit increase 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.

In addition, our current expectation is that our board of directors will be in a position to reinstate a dividend in the second half of 2021.

For earnings history and earnings-related data on Molson Coors Brewing (TAP) click here.