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MONTREAL – revenues and profits have declined at Molson Coors for fiscal year 2018, and the brewer announced on Tuesday that new cuts of the order of 450 million US $ in 2020 to 2022.
The turnover has decreased by 2.1 % compared to fiscal year 2017 to 10,770 billion US$.
To US $ 1.1 billion in the 5.15 US $ per share), the net profit has plunged by 28.7 % in comparison to 2017. This sharp decrease is explained mainly by the reduction of the federal statutory income tax rate in the United States decreed by the administration to Trump 2017, which was doped so that a non-recurring, the balance sheet of the last year. The decline in sales in the United States and in Canada, combined with higher costs, has also hurt.
“In the course of the year, we further increased the cost reductions in the framework of our programme, and this has to some extent mitigated the impact on our Society of the weakening of the demand in the industry in North America, inflationary pressures on inputs, which were higher than forecast, and the challenges associated with the implementation of the supply chain in our breweries in the United States,” said president and chief executive officer of Molson Coors, Hunter’s Mark.
In order to strengthen its balance sheet, the brewer is continuing its cuts of $ 700 million for the period 2017-2019, with a cost savings of $ 205-million this year. In addition, the company resulting from the merger between Coors and Molson account to cut spending by 450 million from 2020 to 2022.
Other strategies have also been adopted to make a profit.
“We have put in place sector in the United States, a business plan focused on improving the sales mix and market shares, to which we have assigned all the necessary resources, which seems to already begin to produce an effect for Coors Light, added Mr. Hunter. We have also put in place a business strategy which is bearing fruit in the areas Europe and International, and we have noticed a continuous improvement in business trends in the sector in Canada.”