Beer giant Molson Coors has posted a 1.8% increase in net sales in the third quarter of its financial year, however branded volumes were down 1.0% in the period.
The group said that sales were driven largely by increased net pricing in all segments, as well as higher financial volume in the US, Europe and Canada, which was partially offset by unfavourable currency movements.
Global brand volumes at the brewer stood at 25.3 million hectolitres, down 1.0% due to declines in the US and Canada, however its Europe and International volumes were up. Global priority brand volumes decreased 1.4%, it added.
Underlying EBITDA was up 9.9% on a reported basis and 1.1% on a constant currency basis, driven by higher net sales, global marketing optimisation processes and a cost savings initiative aimed at managing inflationary pressures.
Volume Growth Drivers
"The volume growth we are seeing outside North America is driven by consistency of our First Choice strategy, the breadth and depth of our global brand portfolio and a positive industry," commented president and chief executive officer Mark Hunter.
"Europe, our second largest business unit by volume, is growing consistently and accelerating the pace of portfolio premiumisation while our International business unit, led by the Latin American markets, posted mid-teens growth due to the strong performance of our global brands, led by Coors Light and the Miller Trademark brands of MGD, Miller Lite and Miller High Life."
On the decline in volumes in the US, Hunter added that "improving our volume performance in the US is a priority and the first step is to improve our share performance through Coors Light and accelerated premiumisation of the portfolio.
"Additionally, across Molson Coors we are over delivering on our synergy and cost savings program to counter higher than anticipated commodity inflation and maintain our deleverage commitment and dividend plan."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
