Financial Performance - Net sales for Q2 2021 reached $2,939.4 million, a 17.4% increase from $2,503.4 million in Q2 2020[19] - Gross profit for the first half of 2021 was $2,002.5 million, up 19.8% from $1,670.6 million in the same period last year[19] - Net income attributable to Molson Coors Beverage Company for Q2 2021 was $388.6 million, compared to $195.0 million in Q2 2020, representing a 99.5% increase[19] - The company reported a comprehensive income of $395.9 million for Q2 2021, compared to $310.7 million in Q2 2020, reflecting a 27.4% increase[21] - Operating income for the first half of 2021 was $758.0 million, significantly higher than $365.5 million in the same period of 2020[19] - The net income including noncontrolling interests for the six months ended June 30, 2021, was $390.3 million, compared to $81.8 million for the same period in 2020, indicating a significant increase[32] Cash and Assets - Cash and cash equivalents increased to $1,308.9 million as of June 30, 2021, up from $770.1 million at the end of 2020[24] - Total assets grew to $28,519.9 million as of June 30, 2021, compared to $27,331.1 million at the end of 2020, marking a 4.4% increase[24] - As of June 30, 2021, total stockholders' equity for Molson Coors Beverage Company was $13,236.4 million, reflecting a slight decrease from $13,268.0 million as of June 30, 2020[32] Liabilities and Debt - The company’s total liabilities increased to $15,283.5 million as of June 30, 2021, compared to $14,709.8 million at the end of 2020[24] - Long-term debt as of June 30, 2021, totaled $8,210.5 million, a slight decrease from $8,214.3 million as of December 31, 2020[94] - The maximum leverage ratio as of June 30, 2021, was 4.75x net debt to EBITDA, with the company in compliance with all debt covenants[99] Segment Performance - North America segment net sales for Q2 2021 were $2,422.4 million, compared to $2,200.2 million in Q2 2020, reflecting a growth of 10.1%[60] - The Europe segment reported net sales of $520.5 million in Q2 2021, a significant increase from $307.1 million in Q2 2020, marking a 69.5% rise[60] - In North America, income before income taxes increased by 4.1% to $428.2 million in Q2 2021, compared to $411.5 million in the prior year, driven by net pricing increases and cost savings[151] - In Europe, income before income taxes rose to $47.4 million in Q2 2021, compared to a loss of $11.0 million in the prior year, primarily due to higher financial volumes from the re-opening of the on-premise channel[151] Operational Challenges - The company incurred one-time costs of $2.7 million related to a cybersecurity incident during the first half of 2021[40] - The company continues to monitor the impacts of the coronavirus pandemic on operations and customer liquidity, which may affect future financial performance[41] - The company experienced a systems outage due to a cybersecurity incident in March 2021, causing delays and disruptions to operations[165] Shareholder Returns - The company declared dividends of $0.57 per share, totaling $123.8 million for the six months ended June 30, 2020[32] - The company suspended regular quarterly dividends from Q2 2020 to Q2 2021, with dividends reinstated in Q3 2021[47] Cost and Expenses - Marketing, general and administrative expenses rose by 26.5% to $537.8 million in Q2 2021, reflecting increased investment in innovation brands[164] - Cost of goods sold per hectoliter in local currency increased by 7.2% and 7.1% for the three and six months ended June 30, 2021, respectively, primarily due to cost inflation and higher transportation costs[177] Taxation - The effective tax rate decreased to 25% for the three months ended June 30, 2021, down from 51% in the same period of 2020, primarily due to a decrease in net discrete tax expense[75] - The company recognized $38.5 million of net discrete tax expense through the second quarter of 2021, significantly lower than the $121.7 million recognized in the same period of 2020[75] Future Outlook - The company continues to monitor the impacts of the coronavirus pandemic on its indefinite-lived intangible assets, particularly the Staropramen brand, which is considered at risk of future impairment[88][89] - The company expects to incur additional restructuring-related charges or adjustments in the future, although the amounts cannot be estimated at this time[72]
Molson Coors(TAP_A) - 2021 Q2 - Quarterly Report