Molson Coors Beverage Co. posted higher profits and revenues in its most recent quarter as its shift to a simpler, more lucrative product line and the ongoing economic reopening boosted sales.
The Colorado and Montreal-based company’s bullish third quarter results released Thursday came amid headwinds of inflation and challenges in the global supply chain.
Gavin Hattersley, president and CEO of Molson Coors, said availability and cost of transportation has emerged as a key pressure point for the company for the three months ended September 30.
âFuel prices are on the rise and truckers are scarce around the world,â he said on a conference call with analysts.
âDriver shortages at our existing carriers force us to use the cash market and pay the cash market fares, which are considerably higher. “
One in four of the company’s shipments now relies on the cash market, a situation that drives inflation up, Hattersley said.
While August and September have been tough months, Molson Coors has taken steps to alleviate supply chain issues and has increased shipments so far in the fourth quarter, in part by shipping more drinks by train, did he declare.
Meanwhile, Coors Light – the company’s biggest brand – increased its market share in the United States during the third quarter, the first time in more than half a decade.
The company has also sold nearly two million cases of alcohol-free products so far this year, a record for Molson Coors as it aims to achieve its “ambitions beyond beer.”
It is also increasingly focusing on premium drinks rather than budget brands, a strategy the company calls âportfolio premizationâ.
Molson Coors said its “above-the-premium” portfolio net sales exceeded 25% of the company’s net brand volume sales on a twelve-month basis for the first time since announcement of its revitalization plan in 2019.
The company said it achieved net income of $ 453 million or $ 2.08 per diluted share in the third quarter, up 32.1% from $ 342.8 million or $ 1.58 per diluted share one year earlier.
Underlying earnings for the third quarter were US $ 380.5 million or $ 1.75 per share, compared to US $ 350.8 million or $ 1.62 per share in the third quarter of 2020.
Molson Coors, who reports in US dollars, said revenue rose 2.5 percent to $ 2.82 billion, from $ 2.75 billion in the previous year quarter.
Analysts on average expected earnings of US $ 1.53 per share, according to financial data firm Refinitiv.