USA – American beverage giant Molson Coors has reported its three years Revitalization Plan is bearing fruits in a view of strong results posted for the year 2022, which had a 4.1% rise in net sales primarily due to positive net pricing and favorable sales mix.
The net sales of the fourth quarter in the EMEA&APAC Segment increased 6.2% on a reported basis due to higher financial volumes, positive net pricing, and a favorable sales mix.
While the financial volumes of the segment also increased by 4.7% primarily due to growth in its above-premium portfolio, brand volumes decreased by 1.0%, primarily due to markets impacted by the Russia-Ukraine conflict.
In the Americas Segment, net sales decreased by 0.7% on a reported basis and increased by 0.4% in constant currency.
Financial volumes slumped 10.5%, driven by an 11.2% decrease in the USA’s domestic shipments attributed to lower brand volumes and cycling the rebuild of distributor inventory levels in the prior year, as well as lower shipments in Canada.
Brand volumes decreased 6.6%, including declines of 6.8% in the US, which were driven by softer industry performance as well as the timing impacts. Canada brand volumes declined 5.0% due to a softer beer industry, and Latin America brand volumes declined 6.9%.
In both segments, net pricing and a favorable sales mix resulting from portfolio premiumization and a favorable channel mix lifted the net sales per hectoliter on a financial volume basis in constant currency. EMEA&APAC and Americas had 14.9 and 12.1% jump, respectively.
Overall, net sales surged by 0.4% and 3.8% in constant currency in Q4, while brand volumes decreased by 5.2% due to the decline in the Americas.
The company also highlighted that it has been able to achieve a US$562.4 million debt reduction since December 31, 2021.
Gavin Hattersley, President, and Chief Executive Officer said: “In 2022, Molson Coors delivered strong results for the year that exceeded our top-line guidance and met our bottom-line guidance for the full year.”
“The top-line growth on a constant currency basis was driven by the strength of our core brands and growth in our above premium portfolio. We believe our 2022 results are not an aberration or a moment in time but a product of three years of work under our Revitalization Plan. And it is a milestone on our path to delivering sustainable growth, year after year.”
For the full-year 2023, despite the inherent uncertainties existing with a softer beer industry and the impacts of continued global inflationary cost pressures, Molson Coors expects a low single-digit increase in net sales compared to 2022 on a constant currency basis.
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