US/CANADA: Molson Coors Q3 profits stung by write-down
- Nine-month net profits up 13.8% to US$434.1m
- YTD net sales rise 10.1% to $3.2bn
- Operating profits in nine-months up 16.1% to $438.9m
- Global Q3 volumes down 0.9% to 17m hectolitres
The brewer was affected by a write-down in value on two brands in Europe
Molson Coors has seen a levelling of profits growth in its year-to-date after Q3 earnings were held back by a write-down in value of two European brands and weak consumer demand.
Net profits in the nine months to the end of September rose by 13.8% to US$434.1m, the Canada and US-headquartered brewer said today (6 November). Sales in the period increased by 10.1% to $3.2bn, as operating profits came in at $438.9m, up 16.1%.
The company had reported a 70% jump in first-half net profits as its benefitted from its takeover of StarBev in June last year.
In Q3, net profits fell by 38.8% to $121.8m, as sales slipped 2% to $1.17bn. Operating profits in the three months dipped by 38.9% to $122.7m. Global volumes in the quarter fell by 0.9% to 17m hectolitres.
The group said the dive in third-quarter profits was partly due to a $150.9m non-cash write-down in the value of its Serbian brand, Jelen, and Ostravar, a regional Czech brand. It also noted continuing “weak” consumer demand across its markets.
“Despite poor consumer uptake, we have continued to invest in our core brands,” said CEO & president Peter Swinburn. “Our innovation pipeline is delivering a mid-single-digit percent of sales, and our owned above-premium brand portfolio is growing at a double-digit rate globally.”
MillerCoors, the JV between Molson Coors and SABMiller, reported a slight rise year-to-date profits today after flat sales.
Shares in Molson Coors were this morning trading up 1.59% at $54.87.
To read the company's full statement, click here
The penultimate part of this month's management briefing sees Ben Cooper continue his review of the environmental efforts of the larger brewers. Here, he looks at Heineken, Molson Coors and SABMiller....
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