US: MillerCoors' Q1 profits slide despite sales increase
- Q1 like-for-like net profits down by 1.2% to US$271.9m
- Net sales up by 1.6% to $1.79bn
- Operating profits slip by 1.6%, hitting $274.5m
- Beer volumes drop by 1.9%
MillerCoors posted its Q1 results today
MillerCoors has posted a slight dip in first-quarter profits as volumes failed to compete with last year's sunshine-fuelled performance.
The US JV between SABMiller and Molson Coors said today (7 May) that net profits were down by 1.2% to US$271.9m in the three months to the end of March. Net sales increased by 1.6% to $1.79bn over the same period while operating profits dropped by 1.6% to $274.5m.
The company struggled to keep up with last year's first-quarter, when warm weather, especially during St Patrick's day, helped net profits surge by 17% and sales climb by 3.6%. MillerCoors' CEO Tom Long said some fall back was inevitable, but added: “Our portfolio transformation strategy is working as evidenced by our growth in domestic net revenue per barrel, so there is reason for optimism as our strategy unfolds.”
Domestic sales to retailers (STRs) fell by 3.3% in the quarter, with MillerCoors Premium Light down by mid-single digits and Coors Light down by low-single digits, MillerCoors said. Miller Lite declined high-single digits for the quarter.
Tenth and Blake Beer Company grew the MillerCoors craft and import portfolio by high-single digits in the quarter, driven by Blue Moon Brewing Company and the continued national expansion of Batch 19, the company said.
To read the company's official statement, click here.
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