Molson Coors Beverage Co. reports net sales in the second quarter fell 15/1% to $2.5 billion and net income fell 41% to $195 million, or 90 cents a share, from $329.4 million, or $1.52 a share.
Sales in North America were down 8.3% while those in Europe plunged 44.6%. The declines were attributable to on-premise closures to combat Covid-19 “as well as market share declines in part as a result from the prioritization of certain key brands and pack types to meet off-premise demand.”
The company also cited “continued unfavorable shipment timing largely attributed to aluminum can supply and other packaging material constraints, as well as lower contract brewing volume.”
In North America, Molson Coors said net sales decreased 8.3% and 7.9% in constant currency due to financial volume declines of 8.3%, reflecting lower brand volume, lower contract brewing volume and an “under-shipment position in the U.S. largely due to aluminum can supply and other packaging material constraints.”
North America brand volumes decreased 7.8% due to the closure of on-premise outlets as well as market share declines. In the U.S., brand volumes decreased 5.2% compared to domestic shipment declines of 6.5%. “We currently expect U.S. domestic shipment trends to be higher than brand volume trends as we build distributor inventories for the balance of the year,” the company said. Canada and Latin America brand volumes declined 9.8% and 48.1%, respectively, in the quarter.
Net sales per hectoliter on a brand volume basis increased 0.9% driven by favorable geographic mix, favorable package mix, and net pricing increases in the U.S. and Canada, partially offset by negative brand and channel mix attributed to the shift of volume from on-premise to off-premise, Molson Coors said.
In the U.S., net sales per hectoliter on a brand volume basis increased 1.0% driven by positive mix, with favorable package mix more than offsetting negative brand mix, and net pricing increases. In Canada, negative mix more than offset the net pricing increases, while Latin America net sales per hectoliter on a brand volume basis also declined.