Molson Coors Q3 and YTD by region - focus
Molson Coors' performance continues to be impacted by forex headwinds
- Underlying pre-tax profits fell 18.9% to US$107.5m in the quarter
This was primarily due to negative foreign currency movements and the termination of the Miller Brands licence agreement earlier this year. Volumes decreased 4% in the third quarter, while net sales per hectolitre were up by 1.6% in local currency, driven by positive net pricing.
- Underlying pre-tax profits decreased 6.7% to $94.6m in the quarter
The company's performance in Europe was affected by unfavourable foreign currency movements. Molson Coors said that, on a constant-currency basis, underlying pretax profits increased 7.1%, driven by higher sales volumes, positive pricing and lower costs, despite the terminated Modelo and Heineken contracts in the UK.
Sales volumes were up 4.9%, driven by growth in nine out of eleven countries in the region. Europe net sales per hectolitre dipped by 1.8% in local currency, primarily due to the loss of the Modelo brands in the UK, lower contract brewing volume and negative mix.
- The International segment posted an underlying pre-tax loss of $2.1m in the third quarter, compared to a loss of $2.7m a year earlier
Molson Coors said this was driven by higher volume in India and Latin America, along with lower MG&A costs, partially offset by negative foreign currency movements.
Total International sales volumes, including royalty volumes, increased 12.1%, driven by triple-digit volume growth in India due to strong volume performance of the company's existing business as well as its acquisition of Mount Shivalik Breweries and double-digit Coors Light growth in Latin America. Net sales per hectolitre fell by 18.2%, primarily due to foreign currency movements and sales mix changes.
MillerCoors has slipped to flat growth in the year so far after a weak third quarter hit profits and sales. For coverage of the results from the JV between SABMiller and Molson Coors, click here.
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