UK: Molson Coors Brewing Company UK’s pre-tax profit decline in 2018
Pre-tax profits have fallen by £40 mln at the UK arm of American brewing giant Molson Coors, whose brands include Carling, Coors Light, Cobra and Doom Bar, the Insider Media reported on October 4.
The newly filed documents for Molson Coors Brewing Company UK, which is headquartered in Burton-upon-Trent, have confirmed its pre-tax profits went from £61.3 mln to £21.5 mln in the year to 31 December 2018.
The company's turnover rose from £1.42 bln to £1.44 bln over the same period.
Molson Coors incurred exceptional costs of £4.1m during the year, down from £7 mln, relating to restructuring its operations.
It added that the fall in its pre-tax profits was mainly a result of a combination of margin reduction from pricing pressure and increased cost of goods due to commodity inflation.
As well as Carling, Coors Light and Doom Bar, the company has deals to produce and distribute Grolsch in the UK and Republic of Ireland as well as Cobra beer and distribution rights for Worthington's, Bavaria and Rekorderlig in the UK.
A statement signed off by the board said: "Industry pricing continues to be the biggest challenge causing margin pressure in the UK beer business in both the on-trade and off-trade.
"The company is managing pricing by channel, in the context of local competition, while staying focused on the core strategy of building strong brands for the long term and focussing on our strategy of first choice for consumer and customer.
"The company will continue to develop and invest in the key brands of the business in order to build a well-balanced product portfolio."
At the start of 2018 the group acquired cider maker Aspall for an undisclosed fee.
In March 2018 it entered into an arrangement with Close Brewery Rentals where kegs opened by the company were sold for £22 mln.
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