More than 1.7 million barrels of beer could be impacted by severe winter storms in Texas and a cybersecurity incident earlier this year, Molson Coors Beverage said Monday.
In February, Molson Coors’ Fort Worth, Texas brewery was forced to be closed for 11 days because of winter storms that hampered the state’s energy grid. Then on March 11, Molson Coors was hit with a cybersecurity incident that impacted operations, including production and shipping of products.
Molson Coors says it “has made substantial progress in restoring its systems” after the cybersecurity incident. All of its breweries are now producing again and “are ramping up to near normal levels.”
Still, the company said 1.8 million to 2 million hectoliters, around 1.53 million to a little more than 1.7 million U.S. barrels, of production and shipments would shift from the first quarter into the rest of 2021 because of the two incidents.
Molson Coors is still experiencing some delays and disruptions to its business because of the cybersecurity incident, the company said.
“Over the past few weeks, we have faced significant and unforeseeable obstacles. While these obstacles will have a negative impact on our first quarter shipments and financial results, we believe the fundamentals of our revitalization plan are strong and our future remains bright,” said Gavin Hattersley, president and chief executive officer of Molson Coors. “We continue to build on the strength of our core brands, aggressively grow our above premium portfolio, expand beyond beer, invest in our capabilities and support our people and our communities.”
Molson Coors did reaffirm its guidance for the full year on Monday, including a mid-single digit increase in net sales and flat underlying EBITDA, both on a constant currency basis. The company also said it expects its board to be in a position to reinstate a dividend in the second half of the year.
The cybersecurity incident and Fort Worth brewery shutdown will shift $120 million to $140 million in underlying EBITDA from the first quarter to the rest of the year, the company said.
Molson Coors said it expects to incur one-time costs in the first and second quarters for consultants, experts and data recovery efforts related to the cybersecurity issue.
