Brewer Molson Coors on Thursday posted rising profits and revenues for its most recent quarter, as its shift to a more streamlined, more lucrative product line and the ongoing economic reopening boosted sales.
The Colorado and Montreal-based company managed to deliver strong third quarter results, despite headwinds from high inflation and challenges in the global supply chain.
Molson Coors President and CEO Gavin Hattersley noted that the availability and cost of transportation emerged as key pressure points for the business during the quarter ended September 30.
“Fuel prices are on the rise and truckers are scarce all over the world,” he said on a conference call with analysts.
“Driver shortages at our existing carriers force us to use the cash market and pay the cash market fares, which are considerably higher. ”
One in four of the company’s deliveries is now in the spot market, a situation that drives inflation up, Hattersley said.
While August and September have been tough months, Molson Coors has taken steps to alleviate supply chain issues and has increased deliveries since the start of the fourth quarter – including shipping more drinks by train, a- he explained.
Meanwhile, the company’s largest brand, Coors Light, increased its market share in the United States in the most recent quarter, a first in more than half a decade.
The company has also sold nearly two million cases of alcohol-free products so far this year, a record for Molson Coors as it works to achieve its “beyond beer” ambitions.
It is also increasingly focusing on premium drinks rather than budget brands. Molson Coors said sales of its “luxury” products represented more than 25% of net sales volume on a 12-month basis for the first time since announcing its 2019 revitalization plan.
Overall, the brewer reported net profit of US 453 million, or US $ 2.08 per share, for its quarter ended Sept. 30, up 32.1% from that of 342.8 million US, or US $ 1.58 per share, from the same period last year.
Underlying earnings for the most recent quarter were US $ 380.5 million, or US $ 1.75 per share, compared to US $ 350.8 million, or US $ 1.62 per share, in the third quarter. quarter of 2020.
Molson Coors’ quarterly revenues rose 2.5% to US $ 2.82 billion from US $ 2.75 billion a year earlier.
Analysts had expected underlying earnings of US $ 1.53 per share, according to forecasts collected by financial data firm Refinitiv.