Canada’s largest beer maker Molson Inc is eyeing a profit before interest and tax of at least C$1 billion (US$730m) by fiscal 2009. If it reached that target it would have succeeded in doubling the profit it made in 2003, when it made C$516m.
Talking on a webcast briefing for investors and shareholders Molson president and chief executive Daniel O’Neill said these targets did not necessarily mean Molson would be making any acquisitions in the short term.
He said: “Participating in consolidation for the sake of participating would not lead to value creation.” He added that this was the conclusion of a recent international study done by the company.
“Molson’s international strategy will start with strong execution in current markets – Canada, the U.S. and Brazil with future mergers and acquisitions activity not being a requirement in the short term,” O’Neill said.
“M&A activity could take place in the mid term and would be undertaken if it could incrementally enhance shareholder value,” he added.
Instead gains in market share will be the top priority as it moves towards its targets, particularly in Canada, where it already holds a 45% market share.
Meanwhile its Kaiser business should deliver strong in the Brazilian market. And in the US, the company will look to double volume levels and establishing Molson as one of the top three import brands,” O’Neill said.
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