Focus - Molson Coors' Q2 & H1 Performance by Region
Molson Coors posted its H1 results today
Today, Molson Coors reported a healthy rise in first-half net profits. Second-quarter profits also increased, but the brewer's sales were flat across the six months. Here, just-drinks takes closer look at the brewer’s Q2 & H1 performance by region:
- US (MillerCoors)
The MillerCoors JV between SABMiller and Molson Coors saw underlying net income for Q2 increase by 8% to US$445.7m, thanks to positive pricing, sales mix and cost savings, Molson Coors said. In H1, underlying net profits also rose by 8%, to $737.6m
MillerCoors domestic sales to retailers (STRs) fell by 1.2% for the quarter, while domestic sales to wholesalers (STWs) decreased 1.7%. Total company net sales-per-hectolitre increased by 3.1% in Q2.
Molson Coors' underlying pretax profits in Canada decreased by 6.5% to $120.9m in Q2 as the cancellation of its Canadian JV with Grupo Modelo made itself felt. First-half underlying pretax profits, however, were up by 33% to $209m because of a profits boost in Q1 from the cancellation at the end of February.
A decrease in the Canadian dollar versus the US dollar saw a $6.3m negative foreign exchange impact on underlying pretax profits in Q2.
STRs decreased by 3.1% on a reported basis in the second quarter and market share declined about one-half point. Net sales-per-hectolitre increased by 0.5% in local currency, driven by positive net pricing and mix.
Europe's underlying pretax profits increased by 13.3% to $86.8m in Q2. In H1, these were up by 44% to $103m. The increase was driven by cost savings and positive geographic mix, along with a $4.9m benefit from foreign currency movements.
Europe sales volumes decreased 1.3% in Q2, as the region was impacted by flooding in parts of Serbia, Bosnia, Croatia and Bulgaria. Consumer demand was also weak in Romania because of poor weather in the quarter. This was partially offset by strong growth in the UK, Hungary and Czech Republic. Net sales-per-hectolitre in Europe increased 1.9% in local currency in Q2.
The International segment posted an underlying pretax loss of $3.7m in the second quarter, versus a loss of $3.1m a year ago, due to higher marketing investments. Over the first-half, however, losses narrowed from $8.3m last year to $6.7m.
Total international sales volumes increased 21.6%, primarily due to strong Coors Light growth in Mexico and Latin America and significant growth in India, partially offset by continued industry weakness in Ukraine and Russia. Net sales-per-hectolitre decreased by 6.7%, driven by geographic mix and foreign currency movements.
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