CANADA: Molson Coors earnings slump in 2005
Molson Coors, the world's fifth largest brewer, saw earnings slump last year on the back of continued discounting in the UK and increased competition in its key markets.
The brewer's woes continued today (9 February) when it reported a 24% fall in after-tax income to US$264.5m. Stripping out the contribution from its recently-sold loss-making Brazilian business Kaiser, Molson Coors said after-tax income was down 23% to US$335.5m.
The annual figures were hit by lower-than-expected earnings during the fourth quarter of 2005. Molson Coors' net income of US$22.4m was down from US$55.72m, a year earlier.
Molson Coors president and chief executive officer Leo Kiely said the results showed there were "challenging operative environments" in the company's key markets.
However, he added that there had been "significant improvements" across the business as the year had progressed.
Kiely pointed to rising sales in Canada and increased market share in the UK, where industry volumes fell during the fourth quarter of 2005. Coors Light sales helped prop up the company's performance in the US.
Last month, Molson Coors sold a majority stake in Kaiser to Mexican drinks group FEMSA but retained a 15% interest in the business.
Kiely said: "The Brazil sale will also allow us to focus on our biggest markets while retaining opportunities in the future for us to participate in the growing Brazil market with a strong and capable strategic partner."
He added: "Looking ahead, we will continue to focus on our other key goals for Molson Coors including capturing at least US$175m in merger-related cost synergies by the end of 2007."
Molson Coors is more likely than not to keep hold of its Brazilian operations because of the huge potential of the market there, an analyst has said. This is despite a run of poor results from the com...
Molson is to start production of Coors' Blue Moon beer for the US market from its Montreal brewery....
First quarter losses announced last week by Molson Coors are wider than originally reported, according to a recent filing....
Molson Coors Brewing Company disappointed investors yesterday by reporting a net loss for the first quarter of 2005. The company said that it had achieved higher consolidated net sales and sales volum...
Molson Coors Brewing Company said yesterday that Daniel J. O'Neill, Vice-chairman, synergies and integration and formerly president and CEO of Molson Inc, has chosen to leave the company May 31 of thi...
Heineken has its eyes on possible acquisitions in Latin America, according to the company's CEO....
Molson Canada has announced it has acquired Ontario microbrewery Creemore Springs Brewery Ltd. Established in 1987, the brewery in Creemore, Ontario, 120 kilometres northwest of Toronto, employs 50 pe...
Peter M. R. Kendall, chief executive officer of Coors Brewers Limited, the European business unit of Molson Coors Brewing Company, will retire from his post on 1 May....
- Interview - Bacardi global marketing boss, whisky
- Comment - Hybrid Spirits: Innovation or Laziness?
- Has Coca-Cola Jumped From Frying Pan to Fire?
- Constellation grapples with glass as reality bites
- Brewers Feel Prolonged Russian Winter
- Mast-Jägermeister targets UK off-trade boost
- Diageo doubles intake for spirits start-ups scheme
- Second senior exec to depart Bacardi
- Portman finds against Diageo "mix it up" tagline
- Bacardi sees North America president step down