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.

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