- Multinational brewing company, Molson Coors (TSX:TPX), has seen its first quarter financials significantly hit by the COVID-19 pandemic
- The company saw its net sales revenue decline by around 8.7 per cent, to C$2.1 billion, due largely to retail slowing down in Europe and the US after shelter-in-place measures came into effect
- This resulted in a net loss of $117 million in the first quarter, when measured by US GAAP standards, versus net earnings of $151.4 million in 2019’s same quarter
- To weather the revenue drought the company has reduced its capital expenditures by around $200 million and is considering altering its dividend
- Molson Coors (TPX.B) is down 10.23 per cent, with shares trading for $61.27 and a market cap of $14.12 billion
Multinational brewing company, Molson Coors (TSX:TPX), has seen its first quarter financials significantly hit by the COVID-19 pandemic.
The company saw its net sales revenue decline by around 8.7 per cent to C$2.1 billion. This was caused by retail slowdown, particularly in Europe and the US, after shelter-in-place measures came into effect.
This resulted in a net loss of $117 million in the first quarter, when measured by US GAAP standards. The loss is markedly worse than net earnings of $151.4 million in 2019’s same quarter.
To weather the revenue drought, the company has reduced its capital expenditures by around $200 million. Furthermore, the company is furloughing some of its staff in Europe and the US.
The company will use these savings to strengthen its balance sheet. Molson Coors’ board is considering suspending, reducing or deferring further dividend payments but is yet to announce any firm plans.
President and CEO of Molson Coors, Gavin Hattersley, said that the first quarter of the year was unlike any in the company’s history.
“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.
“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,” he said.
Gavin went on to say that his focus remains on the safety of its employees and customers, while the company is working to navigate the present challenges.
Molson Coors (TPX.B) is down 10.23 per cent, with shares trading for $61.27 at 12:07pm EDT.