Molson Coors expects that the trends in the home continue to be strong, but not enough to offset the loss of consumption in places such as bars and restaurants.
July 30, 2020 15h51
Molson Coors has seen its profit decline, a shortage of cans
The canadian Press
MONTREAL — Molson Coors continues to grapple with what its chief executive has called a “global shortage of tin cans”, so that consumers have stopped drinking in the bars and restaurants have started consuming more drinks at home because of the pandemic of COVID-19.
“Consumer demand has evolved in a way that nobody could have foreseen six months ago,” pointed out Gavin Hattersley during a conference call with analysts on Thursday after the company released its financial results for the second quarter.
“When the bars and restaurants were closed at the beginning of the [second quarter], the demand for drums in the United States fell to zero […] and, conversely, the demand for cans has exploded,” he explained.
This has put a strain on the availability of cans of 12 ounces (355 milliliters), he said.
“We produce and ship beer in cans at rates significantly higher than in recent years. However, this has not been sufficient to respond to the commands of historically high that we receive,” said Mr Hattersley.
Molson Coors has already surpassed four times his deliveries the week of the celebration of independence day on 4 July in the United States, he said, adding that it was “never before seen”.
The company has endeavored to obtain as many cans as possible to its suppliers, and to diversify its supply in the world, he said.
Molson has also suspended the production of articles having a more limited circulation and packaged in cans of the same size, he said.
The supply of cans the highest of Coors Light remains restricted, said Mr. Hattersley, but the situation began to improve with respect to the bobbin standard of 12 ounces of the industry. Molson expects all the same to ensure that the cans are 12 ounces still remain a problem in the third quarter.
The company expects that the trends in the home continue to be strong, but not enough to offset the loss of consumption in places such as bars and restaurants.
The brewer in montreal saw its net profit decrease of nearly 41% in the second quarter.
Molson Coors has surpassed the expectations of analysts even if the measures put in place by the health authorities pushed its net income and its sales in the most recent quarter.
The net income for Molson Coors decreased nearly 41 % to $195 million US, or 90 cents per share, for the quarter ended June 30. In comparison, it was $ 329,4 million US$, or 1,52 US $per share in the second quarter of 2019.
Excluding non-recurring items, the underlying net profit rose 2.3% 337,3 million US$, or US $1.55 per share, compared to 329,6 million US$, or 1,52 US $per share, the previous year.
Revenues decreased 15.1 % to 2.50 billion $US, while they were $2.95 billion USD a year earlier. Most of the sales in the most recent quarter came from the retailers, and not bars and restaurants.
Analysts expect Molson Coors has posted a profit adjusted eps of 68 cents US per share, from a turnover of 2.45 billion US$, according to the forecasts collected by the firm of financial data Refinitiv.
Molson has shown to have elongated bonuses “thank you” of approximately US $16 million to certain of its key personnel in North America during the quarter, and has put in place a policy of paid leave and holidays, volunteers are paid.