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Molson Coors Says Q1 Challenges Won't Kill The Growth On Tap For 2018

Molson Coors Says Q1 Challenges Won't Kill The Growth On Tap For 2018

Molson Coors Brewing Co (NYSE: TAP) peaked 1.6 percent higher mid-session Wednesday after reaffirming its annual guidance despite first-quarter challenges.

During its investor day presentation, the firm forecast $210 million in cost savings with about $1.5 billion in underlying free cash flow.

The brewery announced a strategy to drive synergies and cost savings; catalyze “disruptive growth” through accelerated e-commerce; international and general portfolio expansions; and create supply chain value through innovations in the brewing process.

Molson Coors intends to allocate capital to grow brands, strengthen the balance sheet by delevering to about a four-turn ratio and return cash to shareholders.

Molson Coors expects to raise the dividend payout ratio about 40-75 percent to between 50 and 65 percent of 2017 underlying net income. That’s a rate of 20-25 percent of trailing annual underlying earnings before interest, tax, depreciation and amortization.

Related Links:

Molson Coors Downgraded By Goldman Sachs On Weak Volume; Coca-Cola European Partners Upgraded On Growth Opportunity

Stifel No Longer Craving Molson Coors, Downgrades To Hold


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