Molson Coors (TAP) June 2008 Quarter Earnings Notes
August 5th, 2008
Conference Call
-energy costs and commodity inflation have become bigger challenges
-Grew Coors Light sales 4% globally
-U.K. economy is weakening, in the first 5 weeks of Q3 sales have decreased at a mid-single digit rate from a year ago
-May and June were weak, so competitors chased volume (lowered pricing – aggressive discounting)
-cost inflation of mid-single digit increases for the rest of the year – agriculture and fuel
-a lot of pub closure in the U.K.
Take-aways
-Energy and agriculture cost inflation (mid-single digits) + slowing growth especially in the U.K. + aggressive discounting from competitors = Ouch.
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