Focus - Molson Coors' Q2 Performance by Region
Molson Coors released its Q2 and H1 results today
Earlier today (6 August), Molson Coors released its second-quarter results. Here, just-drinks takes a closer look at the company's performance in the period by region.
In Canada, underlying pre-tax profits fell by 0.7% to US$138.0m in Q2. A timing difference in marketing spend helped keep performance stable despite lower volumes and a negative sales mix. Sales to retailers fell by 4.3% in the second quarter compared to a 4% drop in the overall Canadian market because of bad weather, Molson Coors said.
Second-quarter sales volumes for Molson Coors Canada dropped by 2.6% and net sales per hectolitre fell by 0.5% in local currency. Cost of goods (COGS) per hectolitre increased by 6% in local currency but marketing expenses fell by about 20% in local currency.
In Europe, underlying pre-tax profits increased 14.4% to $82.4m on a pro forma basis. Europe sales volumes fell by 2% because of poor weather, including flooding in Czech Republic in June. Europe net-sales-per-hectolitre increased about 5% in local currency. COGS per hectolitre increased about 2%, while marketing expenses increased about 3% in local currency.
International posted an underlying pretax loss of $2.4m in Q2, an improvement of $11m from a year ago because of the elimination of Molson's China JV in the third quarter last year, improved profit performance in its non-joint-venture business in China and lower overhead expenses, the company said. International sales volumes increased 51% because of the inclusion of the Central Europe export business this year, along with volumes growth in Mexico. COGS per hectolitre decreased about 3% while International marketing expenses fell by 39%.
To read H1 results from Molson Coors' JV in the US with SABMiller, MillerCoors, click here.
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