News

European growth adds grit to Molson Coors H1 2017 - results

Most popular

Why COVID-19 has restored plastic's popularity

Brown-Forman Performance Trends 2016-2020 - data

Remy Cointreau Performance Trends 2016-2020

COVID-19 a double-edged sword for CBD

How drinks companies can trump the water fountain

MORE
  • H1 net sales slip 1% to US$5.5bn on a pro-forma basis
  • Net profits down 7% to $524.6m
  • Operating profits fall 3% to $906.7m
  • H1 volumes down 1% 
  • Q2 net sales dip 1% to $3.1bn on a pro-forma basis
  • Net profits up 5% to $323.3m
  • Operating profits climb 4% to $537.5m
  • Q2 volumes flat

Molson Coors sales dropped slightly in the first-half but the brewer was buoyed by good growth in Europe and improved above-premium performance in the US.

Molson Coors took full control of MillerCoors last year

Molson Coors took full control of MillerCoors last year

Net sales slipped 1% to US$5.5bn after accounting for last year's takeover of MillerCoors, Molson Coors said yesterday. Net profits fell 7% but came back stronger in Q2 with a 5% increase. Q1 profits were affected by the sale of a Vancouver brewery in the same quarter last year.

Q2's profit growth was partly down to Molson Coors' European market, where the brewer said it took pricing and boosted volumes. Brand volumes in the region were up 12% in the quarter thanks to an earlier Easter but also because of the shift of some of Molson Coors's international business to the European reporting region.

Meanwhile, sales for the US remained flat in Q2 against a declining market backdrop as Molson Coors' above-premium beer portfolio performed well, the brewer said. In contrast, domestic sales-to-retailers volumes declined 2% for the quarter, driven by lower volume in the premium light and below premium segments. Molson Coors's core premium light offering, Coors Light, has been under volume pressure for some time, mirroring headwinds for Anheuser-Busch InBev's Bud Light brand.

CEO Mark Hunter said performance was in-line with expectations, and that the company remains on track to deliver its 2017 goals, which include $175m in cost savings. This year represents the first full year since Molson Coors took full ownership of the MillerCoors JV in the US and became the world's number three brewer.

Following yesterday's results release, Molson Coors stock ended the day's trading 3% up on its opening price

Analyst Vivien Azer from Cowen & Co said the performance was marked by growth for the company's US above-premium sector for the first time in five quarters. However, she warned that volume trends for the MillerCoors unit "continue to be challenged".

To read the company's official results statement, click here.
 


Related Content

Molson Coors can take heart from Q1 silver linings - Analysis

Molson Coors can take heart from Q1 silver linings - Analysis...

Molson Coors Beverage Co Performance Trends 2015-2019 - results data

Molson Coors Beverage Co Performance Trends 2015-2019 - results data...

Can Molson Coors catch up with last year in the final quarter? - results data

Can Molson Coors catch up with last year in the final quarter? - results data...

US delivers YTD 2017 headache for Molson Coors - results

US delivers YTD 2017 headache for Molson Coors - results...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?