MillerCoors buy drags on Molson Coors profits - results
- Half-year net profits lift 6.8% to US$331m
- Net sales in six months to end of June down 3.7% to $1.64bn
- H1 operating profits up 16% to $511m
- Q2 net profits slide 24.8% to $172.3m
- Net sales in three months to end of June fall 2% to $986.2m
- Operating profits in Q2 dip 14.8% to $267.8m
- Click here for coverage of the post-results conference call
- Click here for a breakdown of Q2 performance by region
Molson Coors expects to close the purchase of MillerCoors this year
Molson Coors has reported a dip in second-quarter net profits, blaming charges in connection with its MillerCoors acquisition as well as prohibition in parts of India and planned brewery closures.
Net profits fell 24.8% to $172.3m in the three months to the end of June. The company also said it experienced "significantly higher" sales and marketing expenses in the period. However, net profits in the first-half of the year were up 6.8% to US$331m.
The brewer also reported ForEx headwinds in the quarter. Negative currency impacts were $2.2m in Europe, $1.9m in Canada, $1.2m in Corporate and $300,000 in International.
"Progress in the quarter included net sales revenue per hectolitre growth on a constant currency basis in all of our businesses, strong Coors Light growth globally, improved core brand momentum, fast-growing innovations in key markets, and strong above-premium growth globally," said CEO Mark Hunter. "We significantly increased investments behind our brands, although the timing of shipments and other short-term factors held back bottom-line performance in the quarter."
Hunter said Coors Light grew global volumes by around 4%, driven by Europe, Latin America and the US.
The CEO also took the opportunity to update on the acquisition of MillerCoors.
"In the past few months, we have also made substantial progress on the pending MillerCoors transaction, including integration planning and completing the necessary financing at very attractive rates," he said. "Investor demand for our recent debt offering was very strong, and we achieved record and near-record low interest rates on our debt issue."
Molson Coors expects to close the deal before the end of 2016. The transaction remains subject to Anheuser-Busch InBev's acquisition of SABMiller, which is scheduled to complete on 10 October.
Molson Coors' share price was flat as of 9:49 EDT.
To read the company's official release, click here.
Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
Adult soft drinks appeal to both alcohol drinkers and traditional soft drink consumers....read more
Molson Coors Brewing Company (MCBC) is an alcohol beverage company with a diverse portfolio of owned and partner brands. The company brews, markets and sells a broad range of beers throughout the worl...
The proposed merger of A-B InBev and SABMiller could enable Molson Coors to establish a prominent independent position in the US beer market....
Canadean's "MillerCoors LLC: Consumer Packaged Goods - Company Profile & SWOT Analysis" contains in depth information and data about the company and its operations....
Broo Premium Lager owner Broo Limited has started trading on the Australian Securities Exchange (ASX), after it raised enough funds through its recent IPO. ...
Beer is the highest consumed alcoholic beverage and the third-most consumed beverage after water and tea in the world....
- Five ways small brands can beat big players
- Interview, Bulldog Gin CEO Anshuman Vohra, Pt II
- Will Coca-Cola Co’s Dunkin’ Donuts move pay off?
- Heineken's Q3 2016 results - Preview
- Analysts upbeat on Pernod Ricard's US success
- Diageo weathers Thailand alcohol ban
- Stock Spirits appointments provoke investor unrest
- SWA's David Frost to leave for foreign office role
- Bacardi rolls out new Oakheart rum packs to US
- Seedlip eyes global growth with export deal
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends