World: Molson Coors reports 2016 results
Profits at Molson Coors Brewing surged during the fourth quarter, though not as much as industry analysts had expected and sales of Coors Lite, its top beer, slipped, the company reported on February 14.
While worldwide beer volume rose 1.2 percent, volume for Coors Light fell 1.9 percent.
It is the first quarter in which the Denver-based brewer reported results that reflect its complete ownership of MillerCoors and its stable of brands, including Coors Light, Miller Lite and Blue Moon.
There were a lot of one-time costs and charges that, if included, show a $608.1 million loss in the quarter. The largest charge was an impairment charge for the Molson brands in Canada.
“The completion of the MillerCoors transaction represents a step forward in the size and strength of our business, and this will drive some significant changes in our financial numbers in the near term,” said CEO Mark Hunter.
The company earned $1.44 billion, or $6.65 per share, during the quarter. Earnings, adjusted for non-recurring gains, were 46 cents per share, while analysts polled by FactSet, on average, expected 88 cents per share.
The beer maker’s revenue doubled to just under $2.47 billion, but that was still short of the $2.56 billion that Wall Street was looking for.
Despite sales volume declines at home and abroad, Molson Coors CEO Mark Hunter said he was pleased with the company’s progress.
Speaking during a year-end earnings call in which the company reported depletion declines of 2.5 percent in the U.S. and 0.8 percent globally, Hunter touted the company’s efficiencies, realizing $165 million in cost savings last year out of an expected $550 million in savings to be achieved over the next three years.
Net sales for Molson Coors declined 4.2 percent to $2.468 billion for the quarter. For the year, the company’s sales were also down, 2.3 percent, to $10.983 billion.
Worldwide volumes of Molson Coors’ beer increased 1.2 percent for the quarter to 22.1 million hectolitres. However, the company experienced a 0.8 percent decrease in volume to 95.2 million hectolitres for the year.
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