Molson Coors Beverage Co. reports net sales revenue increased 17.4% (13.7% in constant currency) Sales in North America were up 1.9% and sales in Europe rose 17.8%. Net income nearly doubled to $3886 million, or $1.79 a share.
The company said above-premium brand volumes reached a record-high portion of its U.S. portfolio compared to any prior quarter since the creation of the MillerCoors joint venture in 2008 and a record-high portion of its European portfolio.
“We continued to invest in our capabilities, including the announcement of a new hard seltzer canning line in the U.K. and investments to quadruple our production of hard seltzer in Canada,” the company said, adding:
“We’re continuing to succeed in emerging markets and beyond beer, as our Latin America volume grew by triple digits versus prior year and non-alc brands like ZOA have already surpassed our expectations for the entire year. We’re also delivering on our commitment to invest in our communities and people, as we recently announced another $1.5 million investment in 33 organizations across North America dedicated to empowerment, equity and justice.”
Gavin Hattersley, president/CEO, said the quarter “represents the best results we have had since implementing our revitalization plan nearly two years ago, and it delivered the most top-line growth of any quarter in over a decade. We’ve reached the point where the investments, partnerships and product launches that were byproducts of the revitalization plan are now bearing results, and we plan to put our foot even more firmly on the gas pedal as we drive towards sustainable top- and bottom-line growth for this business.”
In North America, Molson Coors said net sales increased 10.1% and 8.3% in constant currency due to higher net sales per hectoliter and a 1.9% increase in financial volume driven by favorable shipment timing in the U.S. where domestic shipments increased 1.2%, as well as strong performance in Latin America.
North America brand volumes decreased 1.0% including a 4% decrease in the U.S. driven by de-prioritization of non-core SKUs in the economy segment while the above premium and premium segments grew versus the prior year.
Canada brand volume decreased 5.1% with continued on-premise restrictions, while Latin America grew triple digits primarily due to the lower impact of on-premise restrictions in the current quarter.
Net sales per hectoliter on a brand volume basis increased 4.7% in constant currency due to positive brand mix in the U.S. and net pricing increases in the U.S. and Canada, partially offset by unfavorable geographic mix attributed to growing license volume in Latin America.
In the U.S., net sales per hectoliter on a brand volume basis increased 6.9% including positive brand mix as the company continued to premiumize its portfolio aided by innovation brands. The rate favorability, coupled with financial volume increases, resulted in an 8.2% increase in net sales revenue in the U.S. Net sales per hectoliter on a brand volume basis also increased in Canada, due to higher net pricing and positive sales mix, and in Latin America due to positive sales mix.
