US: Molson Coors hit by StarBev costs as sales, volumes surge
- Q1 like-for-like net profits fell by 55% to US$35.6m
- Net sales increase by 20% to $828.5m
- Operating profits drop by 8%, hitting $112m
- Volumes up by 44%
Molson Coors posted its Q1 results today
Molson Coors' StarBev takeover continued to hurt the brewer's bottom line as costs from the acquisition saw first-quarter profits tumble despite big sales and volumes gains.
Net profits slumped by 55% to US$35.6m in the three months to 30 March, the brewer said today (7 May). Net sales climbed by 20% to $828.5m over the same period while operating profits fell by 8% to $112m.
Molson Coors president & CEO Peter Swinburn said that despite the StarBev drag and bad weather affecting all markets, he remained optimistic for the full year. He said: “We grew share in Europe, saw relatively flat share in the US, and lost share in Canada. Our innovation programs got off to a fast start and reflect a pipeline that is both full and exciting.”
Europe sales volumes decreased 1% in the quarter, but volumes and profits performance “was particularly strong in the UK”, Molson Coors said. In Canada, sales volumes dropped by 1.9%.
Molson Coors' share price was down by 2.5% as of 0930 EDT today.
Check back later for full coverage of Molson Coors' results.
To read the company's official statement, click here.
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