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Molson Coors Brewing Company (Ticker: TAP) is a leading multinational brewing company headquartered in Denver, Colorado. The company was formed in 2005 through the merger of Molson Inc. and Coors Brewing Company, creating one of the world's largest brewers by volume. The company operates in Canada, the United States, Europe, and various other international markets.
Here's a summary of Molson Coors Brewing Company's key financials, growth, and other related information:
1. Financials:
* Revenue (2020): $10.3 billion
* Net income (2020): -$1.1 billion
* Diluted earnings per share (2020): -$5.71
* Cash flow from operations (2020): $1.7 billion
2. Growth:
* Historical growth (2016-2020 CAGR): -0.3%
* Projected growth: The global beer market is expected to grow at a CAGR of 2.3% from 2021 to 2028, according to Grand View Research. However, the growth of Molson Coors may not match the market rate due to the company's maturity in several regions, increased competition, and changing consumer preferences.
3. Dividends:
* Dividend yield (as of March 2023): 3.1%
* The company has a long history of paying dividends and increasing its payout over time. Molson Coors aims to maintain a balance between paying dividends and reinvesting in its business.
4. Valuation:
* Price-to-earnings (P/E) ratio (Trailing 12 months): -6.1x
* Price-to-sales (P/S) ratio (Trailing 12 months): 1.7x
* Enterprise value to EBITDA (Trailing 12 months): 10.0x
5. Management:
* Management has a solid track record and the company has undergone several changes in recent years to improve its operational efficiency and profitability. The focus on cost-cutting, innovation, and premiumization is expected to help the company navigate challenges and improve its financial performance in the long run.
6. Risks:
* The company faces risks from changing consumer preferences, intensifying competition, and regulatory pressures. Moreover, environmental and supply chain issues, as well as economic downturns, can affect its performance.
7. ESG (Environmental, Social, and Governance):
* Molson Coors is committed to reducing its carbon footprint, improving water efficiency, and promoting responsible drinking. The company has set several sustainability goals for 2025 and beyond, focusing on reducing its environmental impact and promoting social responsibility.
In summary, Molson Coors Brewing Company is a well-known brewer with a solid history in the beer industry, but the company is facing several challenges, including slow growth and intense competition. The company's financial performance has been impacted recently due to the COVID-19 pandemic and increasing raw material costs. However, management has been taking steps to improve operational efficiency and remain competitive, including focusing on premium products and cost optimization. As always, it's essential to thoroughly review the potential risks before making any investment decisions.