US: Molson Coors Q1 net profits slide 4.1%
- Q1 net profits down 4.1% to US$79.5m
- Operating profits down 3.3% to $121.8m
- Net sales up 0.1% to $691.4m
- Beer volumes worldwide fall 0.4% to 9.9m hectolitres
Molson Coors' profits suffered due to expenses related to its acquisition of StarBev
Molson Coors has reported a 4.1% fall in its first quarter net profits to US$79.5m, mainly due to expenses related to its acquisition of Staropramen-brewer StarBev.
The company, with headquarters in Denver and Montreal, announced today (8 May) that operating profits fell 3.3% to $121.8m, while net sales were up 0.1% to $691.4m. Its beer sales worldwide were down 0.4% to 9.9m hectolitres.
However, Coors Light bucked the trend, with sales increasing by 4% due to volume growth and market share gains in Canada, the US and UK, the company said.
Peter Swinburn, Molson Coors' president & chief executive, said the company also benefited in the US from its “stongest net sales per hectolitre quarter in three years".
He added: "In Canada and the UK, we faced margin pressure from higher pension and input inflation, as well as increased marketing investments in the UK and cycling one-time costs in Canada. Despite the challenges, we continued to invest in our key brands across our company and to fill our innovation pipeline.”
Swinburn said he believed the company had a “clear path” to completing the StarBev purchase by the end of the second quarter.
Meanwhile, Coors said it also drove growth in its premium brands this quarter, including Rickard’s, Creemore and Granville Island in Canada; Blue Moon and Leinenkugel’s in the US and Cobra and Doom Bar in the UK.
For the company's official announcement, click here
As macroeconomic volatility, the mature versus emerging market narrative, the craft revolution coming of age and shifting demographics all radically reshape the alcoholic drinks battleground, innovati...
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