Brewer Molson Coors has reported an 8.7% year-on-year decline in net sales to $2.1 billion in the first quarter ended 31 March 2020, impacted by the coronavirus pandemic.
In Europe, the company’s net sales declined by 15.5% during this period, while North America reported a 7.4% drop.
The underlying EBITDA for the period declined 16.6% to $352.2 million, from $422.3 million in the same period last year.
President and chief executive officer of Molson Coors, Gavin Hattersley, described the financial quarter as “unlike any other in our company’s long history,” and continued,”In the early part of the quarter, we saw mounting confidence and enthusiasm for our plans and our brands - internally and externally.
“Despite the early progress, our first-quarter results were disproportionately affected by the coronavirus, a pandemic that has changed the world - not just for our business, and our industry, but for the entire global economy.”
Significant Adverse Impact
The company warned of a significant adverse impact on both net sales and profit performance for the financial year 2020, particularly in the second quarter.
Its on-premise business has been impacted due to widespread lockdowns to contain the coronavirus pandemic
In 2019, the company generated 23% of its consolidated net sales from on-premise consumption.
The brewer has withdrawn its outlook for the financial year 2020 citing the uncertainty around the impact of the pandemic on its business.
Hattersley explained, “Like everyone else, the full impact and what our new normal looks like going forward is still uncertain, but coronavirus has had, and will have, a material impact on our business.
“We will continue to navigate this challenging time by first protecting our employees and mitigating the short-term risks, and second ensuring that we position the business to compete and win in the long-term.”
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine