Molson Coors Beverage Co., Golden, Colo., and Montreal, reported results for the 2021 second quarter.
In the second quarter, the company made significant progress against its revitalization plan that it laid out nearly two years ago, it says.
Above premium brand volumes reached a record-high portion of its U.S. portfolio compared with any prior quarter since the creation of the MillerCoors joint venture in 2008 and a record-high portion of our European portfolio, while it continued to invest in its capabilities, including the announcement of a new hard seltzer canning line in the U.K. and investments to quadruple our production of hard seltzer in Canada.
The company is continuing to succeed in emerging markets and beyond beer, as its Latin America volume grew by triple digits versus prior year and non-alcohol brands like ZOA already have surpassed its expectations for the entire year, the company says. Molson Coors Beverage also is delivering on its commitment to invest in its communities and people, as it recently announced another $1.5 million investment in 33 organizations across North America dedicated to empowerment, equity and justice.
“This quarter represents the best results we have had since implementing our revitalization plan nearly two years ago, and it delivered the most top-line growth of any quarter in over a decade,” said Gavin Hattersley, president and CEO of Molson Coors Beverage, in a statement. “We’ve reached the point where the investments, partnerships and product launches that were byproducts of the revitalization plan are now bearing results, and we plan to put our foot even more firmly on the gas pedal as we drive towards sustainable top- and bottom-line growth for this business.”
Tracey Joubert, chief financial officer, added: “We are proud of our second quarter operating performance, which underscores our progress in premiumizing our product portfolio. Our work under the revitalization plan coupled with our improved financial flexibility has enabled us to invest in our business, continue to de-lever our balance sheet and to reinstate a dividend, while reaffirming our financial guidance for 2021.”
For the second quarter, net sales revenue increased 17.4% on a reported basis, and 13.7% in constant currency primarily due to financial volume growth in the quarter, favorable brand and channel mix and positive net pricing in North America and Europe. Financial volume increased 5.5% due to improving levels of on-premise re-openings, higher above premium and core brand volumes, as well as favorable shipment timing in the United States, partially offset by lower economy brand volumes. Net sales for each hectoliter on a brand volume basis grew 5.0% in constant currency as a result of positive brand and channel mix through premiumization of the portfolio, increased on-premise re-openings and positive net pricing in North America and Europe, partially offset by unfavorable geographic mix due to the strong brand volume growth in Latin America and Europe.
Within the North America business unit, net sales on a reported basis, increased 10.1% and 8.3% in constant currency due to higher net sales for each hectoliter and a 1.9% increase in financial volume driven by favorable shipment timing in the United States where domestic shipments increased 1.2%, as well as strong performance in Latin America. North America brand volumes decreased 1% including a 4% decrease in the U.S. driven by de-prioritization of non-core SKUs in the economy segment while the above premium and premium segments grew versus prior year. Canada brand volume decreased 5.1% with continued on-premise restrictions, while Latin America grew triple digits primarily due to the lower impact of on-premise restrictions in the current quarter.