Molson Coors sees falling volumes as FY profits, sales slip
- FY net profits fall 9.4% to US$514m
- Net sales in 2014 slip 1.4% to $4.1bn
- Operating profits decrease 9.8% to $727m
- Beer volumes down by 1.3% to 59m hectolitres
- For an in-depth look at the results, click here
- To read coverage of an analysts' conference call with CEO Mark Hunter, click here
Molson Coors pointed to currency exchange movements in hampering its bottom line
Molson Coors has seen a fall in full-year profits and sales, as the brewer was hampered by currency exchange movements and higher taxes in its last quarter.
The North American brewer said today that net profits in the 12 months to the end of December fell by 9.4% to US$514m. Sales slipped by 1.4%, while operating profits in the year declined by 9.8% to $727m.
“Weak consumer demand continued across our largest markets, but we made good progress in building a stronger brand portfolio, delivering value-added innovation, strengthening our core brand positions, and increasing our share in above premium,” said CEO Mark Hunter.
In Q4, Molson Coors saw net profits tumble by 31% to 94.1m, as sales declined 5% to $973.8m. The performance was blamed on “higher effective tax rate, unfavourable foreign currency, lower worldwide volumes and increased brand investments”.
It also pointed to lower volumes in the US and Canada, and the termination of its distribution agreement for Modelo's brands in Canada.
The brewer also announced a four-year, $1bn stock repurchase programme today and raised its dividend from $0.37 to $0.41.
To read the company's full statement, click here.
The proposed merger of A-B InBev and SABMiller could enable Molson Coors to establish a prominent independent position in the US beer market....
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