Login Register

Molson Coors toasts success of its UK operation

By Burton Mail  |  Posted: August 08, 2014

Peter Swinburn

Comments (0)

STRONG growth in the UK has helped a global brewer with a base in Burton see its share price rocket.

Brewer Molson Coors, which has its UK headquarters in High Street, Burton, revealed that shares surged six per cent after the company reported strong earnings.

The firm reported net income of £173m in the second quarter of the financial year, up 9.5 per cent compared to the same quarter of 2013.

The company said it was helped by a 'positive pricing' environment and savings on costs.

In Europe, the volume of beer sold fell 1.3 per cent which Molson Coors blamed on serious flooding in parts of Serbia, Bosnia, Croatia and Bulgaria.

But strong sales in the UK, Hungary and Czech Republic helped offset that weakness.

In a statement with the results, Molson Coors chief executive Peter Swinburn said: "We expect higher brand investments in all of our businesses, which is part of our strong and consistent execution of our brand-led profit growth strategy as a driver of total shareholder return.

"This strategy is generating steady, growing pretax profit and strong cash returns to shareholders and will have an even greater impact as market conditions continue to improve."

Worldwide beer volume decreased 0.9 per cent, but net sales increased 0.9 per cent in the second quarter of 2014.

Mr Swinburn said efforts to improve the firm's brands are part of a strategy to continue growth across the world.

He added: "As a result, we achieved positive pricing and mix, resulting in higher net sales in the quarter."

This comes only weeks after it was announced that Mr Swinburn revealed he would leave the firm at the end of the year.

Read more from Burton Mail

Do you have something to say? Leave your comment here...

max 4000 characters