- Sales from three months to end of June down 3.6% to US$3.1bn
- After flat Q1, first-half sales dip by 2.1% to US$5.45bn
- Volumes down 4.8% for the quarter
Molson Coors Beverage Co blamed “heightened global macroeconomic headwinds” for the company’s 3.6% sales fall in the three months to the end of June – its eighth decline out of the last nine quarters following a marginal gain in Q1.
Volumes fell by 4.8%, with declines across the board: ‘Americas’ was down 5.3%, while ‘EMEA&APAC’ shrank by 3.4%. In sales terms, these were partially offset by net pricing in ‘Americas’ and a favourable global sales mix, the group said.
Volume declines in ‘Americas’, where Q2 sales were down 4.1%, were attributed to lower share performance in the core and value segments in the US, with “industry softness” blamed for the fall in Canada.
In ‘EMEA&APAC’, sales fell by 2% in the second quarter, thanks largely to lower volumes in the UK, driven by soft market demand, a heightened competitive landscape and increased promotional activity, but partially offset by the positive impact of premiumisation.
Molson Coors president and CEO Rahul Goyal highlighted the positive performances of Coors Banquet and Peroni, adding that he was “encouraged” by mixer brand Fever-Tree’s continued momentum.
The company expects its Monaco Cocktails brand – brought on board via the acquisition of Atomic Brands in March – to be incrementally profitable in year one, adding that it was currently “tracking slightly ahead” of expectations.
“We made progress on key aspects of the Horizon 2030 strategy in the second quarter as we navigated heightened global macroeconomic headwinds that affected both consumer behaviour and key input costs in our business,” said Goyal.
“Our approach for the balance of the year includes prudent investments designed to drive scale and efficiency across our global portfolio, while executing against our cost savings plan to mitigate the impacts of persistent macroeconomic volatility.”
Molson Coors maintained its full-year guidance for sales to be flat to down 1%.
In July, the company announced a “coast-to-coast” marketing campaign for Peroni in the US, installing ‘Peroni Portals’ inspired by Italy’s ‘buchette del vino’ wine window tradition.
