Molson Coors Q1 results weaker but sees no impact from cannabis legalization

MONTREAL — Molson Coors Brewing Co.’s first-quarter profit fell partly due to lower volumes, but executives say the drop doesn’t correlate to Canada’s legalization of cannabis last October.

“I think at this point in time, it’s really fair to say we see absolutely no correlation between the sales of cannabis and the sales of beer across the industry or for Molson Canada specifically,” said Frederic Landtmeters, president and CEO of Molson Coors Canada, during a conference call with analysts Wednesday after the company released its quarterly earnings report.

Canada legalized fresh or dried bud, oil, plants and seeds on Oct. 17, while edibles are expected to be legalized later this year.

The company will continue to monitor any possible impact, he said.

“But, there’s no evidence, no data that show us based on the last five months of cannabis sales…an impact there,” said Landtmeters.

Molson Coors president and CEO Mark Hunter added that the company is seeing a similar picture in the U.S. where cannabis is legal in some states.

The company remains on track to launch a cannabis-infused drink once edibles are legalized in Canada, said Hunter. It formed a joint venture with Hexo Corp. called Truss that expects to launch a portfolio of cannabis-infused beverages once edibles are legalized this autumn.

Executives said the profit drop, which is compared to a year ago when the company’s results were boosted by a one-time payment, came due to lower volumes and unfavourable changes in foreign currency, as well as a shift in the timing of the Easter holiday.

That was offset by higher prices and a favourable sales mix in Europe.

The beer company, which reports in U.S. dollars, said it earned US$151.4 million or 70 cents per share for the quarter.

The result compared with a profit of $278.1 million or $1.28 per share a year earlier when the company saw a $328-million cash payment related to a price adjustment for its purchase of the Miller International brewing business.

Molson Coors said its underlying profit for the quarter totalled $112.7 million or 52 cents per share compared with an underlying profit of $104.3 million or 48 cents per share a year ago.

Net sales totalled $2.3 billion, down from $2.33 billion. On a constant currency basis, net sales increased 0.6 per cent.

Molson Coors was expected to earn 58 cents per share in adjusted profits on $2.33 billion of revenues, according to analysts polled by Thomson Reuters Eikon.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Red Deer reports 6 new cases of COVID-19

COVID-19 modelling projections highlight the importance of “aggressive countermeasures,” says the provincial… Continue reading

Suspected thieves caught red-handed by Sylvan Lake RCMP

Incidents happened last Sunday and Monday in the Birchcliff and Lacombe County areas

Optimist Club of Red Deer donates to youth shelter

The Optimist Club of Red Deer has donated more than $1,800 to… Continue reading

Easter Bunny visiting central Albertans to support food banks

The Easter Bunny has been enlisted to help raise money for local… Continue reading

UPDATE: Canadians awake to extra COVID-19 emergency benefit money, feds clarify changes

The CRA and federal officials are working to clarify the confusion around payments

Alberta Health Services provides COVID-19 prevention tips

Alberta Health Services has a number of recommendations for people amid the… Continue reading

Alberta government website has latest COVID-19 statistics

Red Deer Advocate readers can stay up to date on the COVID-19… Continue reading

Message from RE/MAX Commercial: What to do when ‘sorry we’re temporarily closed’ is part of your business as landlord or tenant

Do you have questions about rent reductions or deferral of lease payments? Experts can help

Armed Forces reports 20 military suicides last year, largest number since 2014

Armed Forces reports 20 military suicides last year, largest number since 2014

‘Little to do with COVID:’ Landowners, law experts criticize well cleanup bill

‘Little to do with COVID:’ Landowners, law experts criticize well cleanup bill

First troops return from Ukraine, in quarantine at Ontario military base

First troops return from Ukraine, in quarantine at Ontario military base

Man charged after licking product in store as part of ‘COVID Challenge:’ police

Man charged after licking product in store as part of ‘COVID Challenge:’ police

Business generally supports changes to wage subsidy rules unveiled by Trudeau

Business generally supports changes to wage subsidy rules unveiled by Trudeau

Most Read