• Year-to-date net profits dip by 2.4% to US$419.9m
  • Net sales in nine months to end of September flat at $3.17bn
  • YTD operating profits fall by 11.3% to $572.1m
  • Q3 net losses total $34.4m compared to year-prior profits of $134.3m
  • Net sales in three months to end of September flat at $1.17bn
  • Operating profits in quarter come in at $3.1m versus $195.7m
  • Nine-month volumes flat, Q3 volumes down by 3%
Net profits struggled in the year-to-date for Molson Coors

Net profits struggled in the year-to-date for Molson Coors

Molson Coors has seen a disappointing third quarter hold back its year-to-date, with lower volumes making their presence felt.

The North American brewer saw Q3 sales come in flat, leading to sales in the first nine months of this year also flat-lining. Net profits were also hit, slipping by 2.4% in the year-so-far.

Quarterly net profits were hammered once again by a US$360m impairment of its Jelen and Ozujsko brands, which have been struggling in Serbia, Bosnia and Croatia. The brewer was hit by $150.9m of the impairment in Q3 last year. On an underlying basis, net profits in Q3 fell by a less dramatic 2.7%.

In the company's second quarter, net profits rose by 9% while sales inched up by 1%.

CEO Peter Swinburn:

“The underlying (Q3) results were impacted by negative foreign currency movements, increased marketing spending, and the loss of the Modelo business in Canada, partially offset by the release of a reserve following the favourable resolution of a regulatory matter in Europe, all of which accounted for a combined $22m negative pre-tax impact in the quarter.

“Our results also reflected weak consumer demand in the US, Europe and Canada.

“We reported a pre-tax loss (on a US GAAP basis) due to a $360m impairment of Jelen and Ozujsko. Two primary factors drove the impairments: Weak consumer demand, which we expect to be exacerbated by the long-term impact of the severe flooding in May, and the growth of the low-price value segment."

To read Molson Coors' official statement, click here.