Molson Coors Q2 revenue down after ‘challenging’ May and June

Molson Coors recorded a 4.4% decrease in net sales during the second quarter compared to the same period last year, as the firm was affected by “unfavourable weather and weak industry demand”.

The owner of Miller Lite and Carling beer posted net sales of $2.95 billion for the three months to the end of June. Underlying EBITDA was down to $676 million from $783.3 million last year. 

In the US, which makes up more than two-thirds of Molson Coors’ business, net sales were down 2.9%, driven by lower shipment volumes. US brand volume decreased 4.8% for the quarter, which the company said was “partially reflective of industry declines”.

In Europe, net sales were down 8.1%, as the firm was hit by poor weather and an unfavourable comparison to last year when the football World Cup took place.

Molson Coors CEO Mark Hunter said: “After a solid start in the first four months of the year, May and June were challenging, reflecting unfavorable weather and weak industry demand across our major geographies, resulting in a disappointing volume performance in the quarter. Despite this backdrop, we executed our plans for incremental brand investment to drive accelerated portfolio premiumisation and innovation impact across our business.

“Encouragingly, we delivered strong constant currency net sales per hectoliter growth of 3.7% and our share trends improved in the US and were stable in Europe. We also saw strong premium light share growth in the US as Miller Lite and Coors Light each gained segment share.

“This was ahead of the newly launched Coors Light ‘Made to Chill’ advertising, which is focused on new drinker recruitment by dramatising Coors Light’s purpose to refresh the spirit through its mountain cold refreshment credentials. We believe this creative platform is distinctive, disruptive and breakthrough.”

Earlier this month, Molson Coors announced it had acquired stakes in Pardubický Pivovar in the Czech Republic and Hop Stuff Brewery in the UK as part of a continuing strategy to expand its beer portfolio.  

Mark Hunter added: “We remain resolute on the ambition to improve our top-line through increased investments in our brands, premiumisation and innovation initiatives, including the launch of our Truss cannabis-infused non-alcoholic beverage portfolio in Canada later this year.”