CANADA: Molson Coors hails momentum despite Q1 profits fall
- Q1 net profits fall by 21% to US$82.9m
- Operating profits rise by 17% to $126m
- Net sales up by 4.4% to $690.4m
- Price rises and lower costs drive underlying profits growth in the quarter
Molson Coors reports mixed Q1 figures, higher prices drive sales
Molson Coors has said that underlying momentum in its business is improving, despite seeing first quarter profits fall by a fifth against a tough comparative figure.
Net profits declined as the brewer cycled a one-off gain of $42.6m that boosted profits in the first quarter of 2010. Excluding this, net profits from continuing operations for the three months to the end of March 2011 rose by 31% to $82.4m, driven by higher pricing and cost savings, said the Canada-based brewer today (3 May).
The group's joint venture with SABMiller in the US, MillerCoors, contributed strongly to underlying profits growth, as did Molson Coors' UK business, which doubled pre-tax profits for the quarter.
"In the first quarter, our company increased underlying after-tax earnings by 17% and expanded margins significantly, despite continuing challenges from sluggish core-market economies, weak industry volume and accelerating global commodity inflation," said Molson Coors' CEO, Peter Swinburn.
Demand for Molson Coors' beers remained weak in key markets. In Canada, the group's volume sales fell by 6% over the three months. In the US, MillerCoors reported volume sale to retailers down by 1.7%, albeit an improvement on the previos five quarters. In the UK, meanwhile, volume sales to retailers fell by 1.6% against a UK market down by 4% over the same period.
For the full announcement, click here.
Carlsberg has joined Anheuser-Busch InBev in transferring the head of its UK operations to the eastern front. Is this more than mere coincidence?...
Having raised a few eyebrows with its pursuit of Foster's Group, SABMiller has won back a few cheerleaders by signing a strategic alliance with Anadolu Efes. Chris Mercer looks at the market reaction ...
Anadolu Efes has appointed a new general manager in Russia as the brewer prepares to absorb SABMiller's business in the country....
- What do A-B InBev results mean for SABMiller deal?
- Interview - Beam Suntory's EMEA president
- Interview - William Grant & Sons
- Beckham, Diageo and the Allure of the VIP Pop-Up
- just The Preview - Brown-Forman Q3 & YTD
- Diageo, Beckham launch VIP pop-up for Haig Club
- Diageo completes Don Julio, Bushmills swap deal
- Pernod Ricard sends Martell Mumm PJ head to Asia
- Tesco reinstates Dan Jago following suspension
- Pinnacle Vodka, Skinnygirl roll out on ice
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Beam Suntory Inc. - Strategy and SWOT Report
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research