Molson Coors post Q3 growth despite supply chain pressures
Molson Coors Beverage Company posted top- and bottom-line growth in its fiscal third quarter, buoyed by strength of Coors Light in the US, momentum in Europe and Canada, and continued expansion of its global above-premium portfolio.
The company said third-quarter net sales revenue rose to $2.82 billion, up 2.5% compared with the year-ago quarter. Net income jumped 32.1% to $453 million, or $2.08 per diluted share, up from $342.8 million, or $1.58 per share, in the third quarter of 2020.
“Twenty-four months ago, we announced a revitalisation plan to put Molson Coors on track to deliver sustainable top- and bottom-line growth, and we continue to make meaningful progress towards that goal,” said Molson Coors CEO Gavin Hattersley.
“I remain confident that we are on track to deliver our full-year key financial guidance for 2021.”
The gains came despite a raft of global supply chain issues and significant inflation, which resulted in soaring prices for transportation and key raw materials. Those pressures are expected to persist in the months ahead.
“Fuel prices are up. Truckers are in short supply around the world, and freight costs are up too,” Hattersley told analysts and investors today on the company’s earnings conference call.
And while Molson Coors has taken significant steps to reduce the effect of the supply chain tightness – including inking long-term contracts with carriers, hedging programs and shifting more of its products to rail – “inflation will continue to be a pressure point for us and for just about every other company,” he said.
That resulted in lower shipments during the quarter than the company projected, but the tide is beginning to turn, Hattersley said. So far in the fourth quarter, shipments are up to nearly 1 million barrels a week in the U.S., Molson Coors’ largest market, helping boost distributor inventories by more than 10% heading into the key holiday season.