![]() ![]() In order to help support the challenges facing our on-premise customers and retailers, along with our overall commitment to quality, we initiated voluntary temporary keg relief programs in many of our markets, which will provide customers with reimbursements for untapped kegs that meet certain established return requirements. However, we have provided the above information on early indications of the impact on our April performance in response. ![]() Therefore, we withdrew our financial outlook for 2020 and beyond and the market remains too unpredictable to provide updated detailed financial outlook. The extent, severity and duration to which our operations will be impacted by the pandemic remains uncertain. Separately, in Europe, we estimate that brand volumes are down approximately 40% for the first four weeks of April 2020. We estimate that this will result in negative trends in volume, net sales, and mix versus our prior estimates and expect these trends to continue at least through the end of the year and in particular in the second quarter. to continue while social isolation continues to be practiced and expect that any increase in total off-premise volumes due to channel shifting will not be sufficient to offset the losses experienced in the on-premise. We expect the negative on-premise trends in the U.S. we continue to see strong STR trends in the off-premise channel, but these trends are not fully offsetting the effective elimination of on-premise sales. STRs were down approximately 14%, driven by lower premium and above premium brand trends, with economy brand performance down approximately 4% in the four weeks. Specifically, for the first four weeks of April 2020, in North America, we estimate that U.S. ![]() While off-premise sales continue to perform well, we do not expect them to fully offset the loss of the on-premise volume. In April 2020, the impacts of the coronavirus pandemic have continued to significantly adversely affect the on-premise channel, which continues to be effectively closed across all of our markets, and the benefit of pantry loading to our North America STR performance at the end of March has not continued. Specifically, we estimate that approximately 23% of our 2019 consolidated net sales resulted from on-premise consumption, with approximately 17% of our North America net sales and approximately 50-55% of our Europe net sales each coming from this important part of the industry, and in nearly all of our markets the on-premise business has been effectively reduced to zero. We currently expect a significant adverse impact, particularly in the second quarter of 2020, to both net sales and profit performance for fiscal year 2020, and, possibly, beyond, due to the resulting closure of the on-premise channel in effectively all of our markets, as well as the anticipated negative impact of the pandemic on the global economy. We are actively monitoring the impact of the novel coronavirus pandemic, which has changed the landscape of 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.” 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. Gavin continued, “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. In the early part of the quarter, we saw mounting confidence and enthusiasm for our plans and for our brands - internally and externally.” “The first quarter of 2020 was unlike any other in our company’s long history. Molson Coors president and chief executive officer Gavin Hattersley said: GOLDEN, Colo., and MONTREAL, Quebec – April 30, 2020 – Molson Coors Beverage Company (NYSE: TAP TSX: TPX) today reported results for the 2020 first quarter and provided updates on ongoing pandemic impacts. GAAP Net Loss of $117 Million (Loss of $0.54 Per Share), andĬoronavirus Impacts Expected to Significantly Adversely Impact FY 2020 ResultsĪs Employee Safety, Deleverage, and Liquidity Remain Priority Net Sales Revenue Decreased 8.7% Reported and 8.2% in Constant Currency Molson Coors Reports 2020 First Quarter Results ![]()
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