Financial Analsis

Molson Inc. was established in 1786 and is the 15th largest brewery in the world (FP Infomart, 2004). The company produces a variety of different beers, including Molson Canadian, Rickard’s, A Marca Bavaria, and Kaiser. To support these brands and to increase its market share, Molson has established operations in Canada, the USA, and Brazil (Molson, 2004a).

This report will evaluate Molson’s current operations and financial statements to determine the price range at which an investor should be willing to purchase one of the company’s shares. To put the ratios in perspective, Molson’s financial performance will be compared with the industry average as well as with its main competitors: Anheuser-Busch, SABMiller, and Interbrew. Although many ratios were examined, only those that gave an indication of the company’s risks or that were significantly different from its competitors’ were included for discussion. The information used in this report was drawn from a variety of sources, up to and including the date of November 11, 2004.

The beer industry in North America has become relatively stagnant, with growth of only 1 to 2% per year. This trend is primarily a