Financial Performance - Net sales for the three months ended March 31, 2021, were $1,898.4 million, a decrease of 13.7% compared to $2,102.8 million for the same period in 2020[20]. - Gross profit increased to $731.0 million, up 17.3% from $623.8 million year-over-year[20]. - Operating income for the first quarter of 2021 was $177.2 million, compared to an operating loss of $92.5 million in the same quarter of 2020[20]. - Net income attributable to Molson Coors Beverage Company was $84.1 million, a significant improvement from a net loss of $117.0 million in Q1 2020[20]. - Comprehensive income for the three months ended March 31, 2021, was $206.5 million, compared to a comprehensive loss of $616.1 million in the prior year[21]. - Consolidated net sales for Q1 2021 were $1,898.4 million, a decrease of 9.67% from $2,102.8 million in Q1 2020[52]. - Consolidated income before income taxes for Q1 2021 was $126.3 million, compared to a loss of $158.7 million in Q1 2020, marking a significant turnaround[52]. - The North America segment saw income before income taxes increase by 89.2% to $144.2 million in Q1 2021, compared to $76.2 million in the prior year[135]. - The Europe segment reported a loss before income taxes of $89.4 million in Q1 2021, an increase from a loss of $76.8 million in the prior year, primarily due to lower financial volumes from on-premise closures[136]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $532.7 million from $770.1 million at the end of 2020, reflecting a net decrease of $230.5 million during the quarter[26]. - The company reported a net cash used in operating activities of $190.9 million for the first quarter of 2021, compared to $18.1 million used in the same period of 2020[26]. - The company did not pay dividends in the first quarter of 2021, a significant change from $123.4 million paid in Q1 2020[26]. - As of March 31, 2021, the company had a net positive cash position of $36.1 million, down from $92.7 million as of December 31, 2020[84]. - The company maintains a $1.5 billion revolving credit facility, with no borrowings drawn as of March 31, 2021[86]. - The maximum leverage ratio as of March 31, 2021, was 5.25x net debt to EBITDA, with planned reductions in subsequent quarters[194]. Assets and Liabilities - Total assets as of March 31, 2021, were $27,163.6 million, slightly down from $27,331.1 million at the end of 2020[24]. - Total liabilities decreased to $14,329.6 million from $14,709.8 million at the end of the previous year[24]. - As of March 31, 2021, total stockholders' equity was $12,834.0 million, a decrease from $12,946.0 million as of December 31, 2020, reflecting a decline of approximately 0.9%[28]. - As of March 31, 2021, total long-term debt amounted to $7,181.2 million, a slight decrease from $7,208.2 million as of December 31, 2020[82]. - The fair value of the company's outstanding long-term debt was approximately $8.6 billion as of March 31, 2021, a decrease from $9.1 billion as of December 31, 2020[85]. Operational Challenges - The company incurred incremental one-time costs of $2.0 million related to a cybersecurity incident in the first quarter of 2021, impacting production and shipments[34]. - The coronavirus pandemic is expected to continue having a material impact on the company's financial results in 2021 and possibly beyond[35]. - The company continues to monitor the impacts of the coronavirus pandemic on its business and the potential implications for its financial results[81]. - The company experienced a systems outage in March 2021 due to a cybersecurity incident, causing delays in production and shipments[147]. Segment Performance - North America segment net sales decreased to $1,692.0 million in Q1 2021 from $1,789.7 million in Q1 2020, a decline of 5.44%[52]. - Europe segment net sales fell to $206.9 million in Q1 2021 from $317.6 million in Q1 2020, a decrease of 34.83%[52]. - Brand volume in North America decreased by 6.7% and financial volume declined by 9.4% for the three months ended March 31, 2021, attributed to on-premise restrictions and operational disruptions[156]. - Europe brand volume decreased by 17.0% and financial volume declined by 22.0% for the three months ended March 31, 2021, primarily due to on-premise restrictions[167]. Future Outlook - The company anticipates 2021 to be a year of top-line growth and investment despite challenges from the Texas winter storm and cybersecurity incidents[213]. - The revitalization plan initiated in October 2019 aims to drive long-term sustainable success, with charges related to restructuring activities expected to continue through fiscal year 2021[41]. - The company plans to expand the Yuengling brand into Texas in the fall of 2021 as part of a new joint venture[218].
Molson Coors(TAP_A) - 2021 Q1 - Quarterly Report