Molson Coors performance continues to be impacted by forex headwinds

Molson Coors' performance continues to be impacted by forex headwinds

Earlier today, Molson Coors reported its Q3 and YTD results. Here,  just-drinks takes closer look at the brewer’s Q3 performance by region:


  • 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.

International Business

  • 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.

US (MillerCoors)

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