US: MillerCoors aims for premium light boost after H1 profits dip
- First-half net profits drop 4% to US$684.6m
- H1 net sales flat at $3.9bn
- Operating profits fall 4.3% to $692.4m
- Volumes down 3.9% to 32m barrels
The brewer saw a dip in first-half profits as sales were flat
MillerCoors has suffered from a “tough” second-quarter in volume sales, leading to a drop in H1 profits.
The US-based JV between Molson Coors and SABMiller said today (6 August) that net profits in the six months to the end of June fell by 4% to US$684.6m. Net sales in the period were flat at $3.9bn, while operating profits were down 4.3% to $692.4m.
In its second-quarter, the company saw net profits fall 5.8% to $412.7m, as sales slumped by 2.9% to $2.16bn. Operating profits in the three months fell 6% to $417.9m.
Q1 sales had risen slightly year-on-year, but profits also lagged in the quarter.
“This was a tough volume quarter for us and for the beer industry overall,” said MillerCoors' CEO Tom Long.
The US premium light beer category has faced struggles, but Long added: “We are working hard to restore volume growth which we believe will come as the health of the category is defined by the premium light performance.”
Long said that “above premium” brand volumes were around 9% of its portfolio in the second quarter. “Our strategy to evolve our portfolio to the fast-growing and higher-margin areas of the business is working, as shown by the successful launch of Redd’s Apple Ale and the nationwide expansion of Leinenkugel’s Summer Shandy,” he added.
Shares in MillerCoors were today trading up 4.24% at $52.20.
To read the company's official statement, click here
Earlier today, Molson Coors reported a jump in first-half profits helped by sales from its StarBev takeover boosting the group's performance.
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