Molson posts higher profit in quarter - Brief Article

Modern Brewery Age, Nov 19, 2001

Hot summer weather in Canada spurred higher beer sales, providing Canada's Molson Inc. with higher profits, the company said last week. Molson said net earnings rose to C$64 million ($40 million) or 53 cents a share, fully diluted, in the second quarter ended Sept. 30, from C$33.3 million or 28 cents a share fully diluted in the year earlier period.

Revenues climbed 14% to C$760 million from C$665 million on a 5% rise in Molson's operations in Canada, and the consolidation of its Brazilian operations and 50.1% stake in Molson USA, Brewing volume rosed 22% to 3.8 million hectoliters, with volume in Canada representing 2,7% of that increase. Total Canadian industry sales volume rose 1.9% to 5.9 million hectoliters in the quarter from a year earlier. But the company said Molson's volume in Canada increased 2.7% to 2.7 million hectoliters.

"Our summer last year was pathetic, compared to this year, which was beautiful and hot, so that increases your number of patio days and people outside on the patio drinking beer," said John Paul Macdonald, vice president of corporate affairs. "All things being equal, though, the Canadian domestic market, as well as the United States, in terms of same store growth or organic growth, is only about 1 percent a year."