Higher costs dampen Molson’s recovery

Article Excerpt

Molson Coors continues to benefit from the re-opening of bars and restaurants in the wake of COVID-19 lockdowns. That has let it resume dividend payments and pay down debt. The company is also launching non-beer products to spur its growth. However, higher operating costs continue to hold back its profits. MOLSON COORS CANADA INC. is a hold. The world’s fifth-largest beer brewer (Toronto symbols TPX.A $70 and TPX.B $68; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 216.5 million; Market cap: $15.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 3.0%; TSINetwork Rating: Average; www.molsoncoors.com) took its current form in 2005 when Canadian brewer Molson merged with U.S.-based Adolph Coors. Canadian investors received shares of Molson Coors Canada, which are equivalent to shares of Molson Coors Beverage Co. (New York symbol TAP). The current firm is the world’s fifth-largest brewer. Its main brands include Molson Canadian (Canada), Coors Light (the U.S.) and Carling (the U.K.). In October 2016, the company acquired the remaining 58% of its MillerCoors brewing joint venture…