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Copy of Molson Coors Brewing Company

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Darren Wheeler

on 14 May 2015

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Transcript of Copy of Molson Coors Brewing Company

In 1868 Adolph Coors immigrated to the United Sates from Germany with the dream of establishing a quality brew and making lots of money. By 1880, Coors was the sole owner of a brewery in Golden, Colorado that produced ice cold, Rocky Mountain refreshment for the gold miners to enjoy after a hard day of prospecting
Molson Coors History
Molson Coors Brewing Company
In 2005 Coors merged with a Canadian brewing company named Molson. As the name suggests, the company produces dozens of different alcoholic beverages available for purchase in the United States.
Merger with Molson and products
Molson Coors strives to make a positive mark on the community using their "Our Beer Print" policy. This policy is a pledge to consumers that Molson Coors will leave positive impressions and erase negative impacts on their communities.
Policies
Molson Coors accounts for $14 billion of the roughly $7.3 trillion world industry, which is roughly .19% of the alcoholic beverage brewer market. Its main competitor in America is the Boston Beer Co. Although the beer industry is typically resilient, it has seen a decline of about 1-2% in volume in four of the last five years.
Market and Competition
Molson Coors is a global business.

Operating on a global scale presents unique challenges.

Requires innovative solutions to complex problems.
Globalization
In the United States, Molson Coors uses the Last-in First-out method or LIFO. This means that the most recent products to come in are the first to be recorded as having been sold.

In Europe and Canada, Molson Coors uses the First-in First-out method or FIFO. This means that the oldest products in stock are the first to be recorded as having been sold.


Inventory Methods
According to the International Financial Reporting Standards (IFRS) LIFO is prohibited. Inventory is measured at the lower of cost or net realizable value.

According to IFRS, "When inventories are sold and revenue is recognized, the carrying amount of those inventories is recognized as an expense..." This amount is referred to as Cost of Goods Sold (COGS) (Deloitte)
International Financial Reporting Standards (IFRS)
Tim James, Dan Alotta, Sean Richards
Horizontal Analysis
Boston Beer Balance Sheet
Boston Beer Income Statement
Intercompany
Vertical Analysis
Statement of Cash Flows
Ratios
Price-Earnings Ratio
Molson Coors: 25.203
(Market Value Per Share)/
(Earnings Per Share)
Boston Beer:38.458
Price Earnings ratio is a ratio of the price of a company’s stock to the earnings per share.
Return on Common Stockholders' Equity (ROE)
(Net Income-Preferred Dividends)/
(Average Common Stockholders' Equity)
shows how much profit a firm is making with the shareholder’s money
Molson Coors: 6.703%
Boston Beer: 25.871%
Documentation:
Class notes, PowerPoints, textbook
Sources used: Molson Coors financials from Molson Coors Website, Boston Beer financials from Boston Beer Website, Investopedia, Yahoo finance,

Dormann, Nathan, Josh Lantz, Jacqueline Otieno, and David Haley. Molson Coors Equity Evaluation (n.d.): n. pag. 2006. Web.

"IAS 2 : Inventories." Deloitte Global Services. N.p., n.d. Web. 24 Nov. 2014.

Schauber, David, Jr. "Should Investors Drink Up Molson Coors After Its Q3 Results?" - Molson Coors Brewing Company (NYSE:TAP). Seeking Alpha, 24 Nov. 2014. Web. 25 Nov. 2014.
Intracompany
&
Vertical Analysis
Dividend Yield Percentage
Molson Coors: -2.945
Molson Coors: 1.669
Molson Coors: 41.046
Molson Coors: 2%
Boston Beer: 8.003
Boston Beer: 14.061
Boston Beer: N/A
Boston Beer: 0.141
Debt to Equity Ratio
Price to Book Ratio
Net Profit Margin
(Annual cash dividends per share)/
(Market Price Per Share)
percentage of closing market price per share of the company’s common stock that is paid out in annual cash dividend per share
Liabilities/Equity
measures the ratio of liabilities over equity
(Stock Price)/
(Total Assets-(Intangible Assets+Liabilities))
shows whether the stock is undervalued or overvalued
(Net Income)/Revenue
what percentage of income the company keeps from revenue
Competitive Strategy
In order to combat the decline in volume in the beer industry, Molson Coors focuses on taking market share from existing competitors through policies such as better pricing and cost savings. Coors relies heavily on operational growth to drive earnings per share (Schauber).
Pro-Forma Analysis
Balance Sheet
Income Statement
Statement of Cash Flows
Balance Sheet
Income Statement
Balance Sheet
Income Statement
These ratios are the basis upon which we will be evaluating Molson Coors.
Balance Sheet
Income Statement
Full transcript