Focus - Molson Coors' Q4 Performance by Region
Molson Coors reported Q4 and FY results today
Earlier today, Molson Coors reported a healthy rise in full-year net profits and sales. Fourth-quarter profits also leapt, but the brewer's sales were flat in the last three months of the year. Here just-drinks takes closer look at the brewer’s Q4 performance by region:
The company’s domestic unit saw Q4 pre-tax profits slip 14% to US$86.9m due to “continued weak consumer demand and promotional challenges” in the North American country. A decrease in the Canadian dollar versus the US dollar also meant around a US$4m negative foreign exchange impact in the quarter, the company said. Sales in the period were up 2.6% due to the firm switching to a Gregorian calendar, which added three days to the quarter, it said.
Pre-tax Q4 profits rose by 11.8% in the region to US$39.7m due to “volume growth, positive pricing, lower supply chain costs and an approximate $2m benefit from favourable foreign currency movements,” Molson Coors said. Volumes were up thanks to an “improved performance in the UK, Romania, Hungary and the Czech Republic, However, this was offset by “continued overall weak demand in the region, particularly in Serbia and Bulgaria”.
The unit posted an underlying pre-tax loss in the fourth quarter of US$5.6m, against a $0.3m profit in 2012. The brewer pointed to “the negative impact of transferring the Carling travel and export business to the Europe segment and of cycling one-time cost reductions last year”. Volumes for the unit fell 3.6% in the quarter, but declines in Ukraine were partially offset by “strong growth” in Mexico and Latin America.
US business (MillerCoors)
The SABMiller and Molson Coors JV reported a 30.2% lift in Q4 underlying net profits to US$241.9m, driven by “marketing and administrative cost reductions, domestic pricing and brand mix”. However, these were “partially offset by the impact of lower volumes and commodity and brewery inflation”, the company said. To read more on MillerCoors' results, click here.
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