Molson Coors reported its Q4 and FY results today

Molson Coors reported its Q4 and FY results today

Earlier today, Molson Coors reported a 9% drop in full-year profits as sales slipped by 1.4%. Here we take a look at how the US and Canada-headquartered brewer fared in its fourth quarter across its regions: 

  • US

MillerCoors, the company's JV with SABMiller, saw Q4 net profits fall by 10% to $213m, while sales slipped by 1.1% to $1.78bn. Operating profits in the final three months of 2014 fell 9.3% to $218m. Sales to retailers volume declined 1.7%. The company blamed “lower shipment volume, unrealised losses on commodity hedges and higher marketing investment” for the performance. 

  • Canada

Pre-tax profits in the quarter declined by 14.1% to $76.2m and 8.8% on a constant currency basis.  More than half of the constant-currency decline was due to cycling the $4.2m benefit of 2013 equity earnings and administrative cost recoveries related to the Modelo joint venture, which was terminated last February, Molson Coors said. Input cost inflation, lower volume, and cycling "unusually low incentive compensation expense a year ago" also contributed to the decline, the company added. 

  • Europe

Pre-tax profits in the region fell 14.7% to $38.3m and 10% on a constant currency basis. "Positive volume and pricing drove strong net sales and gross margin growth in the quarter, but pretax income declined due to increased marketing and sales investments and approximately $2m of negative impact from foreign currency movements," the company said.

Serbia, Ireland and the UK all saw volumes flat or falling, but eight coutries saw growth leading to an overall volume rise of 1.8% in Europe. 

  • International

The group's international unit - which includes Latin America and India - saw its losses slow in the quarter from $5.8m the prior year to $3.9m, helped by "strong double-digit volume growth and lower overheads", the company said. 

Total international sales volumes climbed 19.5%, primarily due to "strong Coors Light growth in Latin America and volume growth in India". Net sales per hectoliter decreased 14.3%, driven by foreign currency movements and geographic mix, Molson Coors said.