Molson Coors profit doubles in Q2

Molson Coors Brewing Co. (TSX:TPX.B, NYSE:TAP) says its second-quarter profit more than doubled even though penny-pinching consumers and a soggy Canadian summer contributed to reduced sales.

MONTREAL — Molson Coors Brewing Co. (TSX:TPX.B, NYSE:TAP) says its second-quarter profit more than doubled even though penny-pinching consumers and a soggy Canadian summer contributed to reduced sales.

Reporting in U.S. dollars, the Montreal and Denver-based beer maker says it earned $187.3 million or $1.01 per share in the three months that ended in June, as higher overall prices and reduced costs offset lower sales volumes.

That compares with earnings of 42 cents a share in the same period last year or $79.4 million, before Molson Coors and SABMiller PLC formed their joint venture MillerCoors.

“What I’ve seen since coming back to Canada is that boy the weather sure seems to have deteriorated over the years,” Dave Perkins, the new chief executive of Molson Canada, said in a conference call.

“It is a cold summer and I think that’s the biggest factor that we’re seeing in July (early in the third quarter). It’s anybody’s bet obviously how that plays out through the rest of the summer”.

The underlying pretax income in Molson’s Canadian business decreased 11 per cent to $137.3 million as the lower Canadian dollar reduced profits by $18 million. In local currency, income grew two per cent”.

However, Molson Coors’ sales to retail decreased 0.5 per cent as Canadian beer industry volumes grew about 1.8 per cent, decreasing its total market share by 0.9 per cent.

Canada’s sales volume was 2.4 million hectolitres, down 2.9 per cent from 2008, while net sales decreased 11.6 per cent to $471 million.

Total net sales excluding the United States totalled $798.9 million. MillerCoors sales were $2.14 billion.

Excluding one-time charges, Molson Coors earned $1.11 per share, higher than the 97 cents predicted by analysts.

Underlying after-tax profits increased 20.6 per cent to $205.4 million, up from $170.3 million, or 92 cents a year earlier.

The volume of beer sold fell 3.2 per cent worldwide.

“Our company is off to a solid start in the first half of this year, reflecting the benefit of our strong brands, strategic initiatives, and cost reduction programs,” Chief executive Peter Swinburn told analysts.

“In Canada, for the balance of 2009 we expect a challenging environment due to weak economic conditions and a continuation of consumers seeking value propositions.”

The brewer, which has been affected by deep discounting particularly in Quebec, plans to address value brands and boost its marketing to kick start its Molson Canadian brand.

Molson Coors achieved $32 million of cost savings in the quarter, including $3 million from its share of the MillerCoors joint venture. It also realized $25 million of the $60 million in synergies obtained by MillerCoors.

U.S. segment pretax income increased 26.5 per cent to $142.7 million due to strong growth by MillerCoors. In Britain, profits increased 70 per cent to $36.8 million, despite a $10 million hit from the value of the British pound.

British beer volumes decreased 12.4 per cent due to the soft industry performance and the company’s strategy to forgo low-margin sales.

The Toronto Stock Exchange was closed for the civic holiday on Monday. On the New York Stock Exchange, Molson Coors shares gained $2.04 or 4.51 per cent, to $47.25 in early afternoon trading.

Just Posted

Fredericton police release scene of shooting spree, but ‘damage’ remains

FREDERICTON — Police have released the Fredericton apartment complex that was the… Continue reading

Police seek public’s help after East Coast lobster thieves strike again

SAINT-SIMON, N.B. — There has been another crustacean caper on the East… Continue reading

Court hearing on Humboldt Broncos fundraising a first under new Saskatchewan law

SASKATOON — A court hearing related to money raised following the Humboldt… Continue reading

Weed’s want ads longer, marijuana job searches up as industry grows: study

OTTAWA — The growth of Canada’s soon-to-be-legal recreational pot industry is starting… Continue reading

Google Generation’s push for more technology transforming health care: survey

TORONTO — Digitally savvy Canadians who make up the Google Generation are… Continue reading

WATCH: A horse was neglected by its owner. Now the horse is suing

ESTACADA, Ore. - Justice is an 8-year-old American quarter horse who used… Continue reading

Keep bribes quiet for 10 years, FIFA won’t punish you

LONDON — FIFA has officially eradicated corruption. All it took was pressing… Continue reading

Beyoncé honours ailing Aretha Franklin at Detroit concert

DETROIT — Queen Bey dedicated her performance with husband, Jay Z, to… Continue reading

‘Outlaw King’ to open Toronto film fest; ‘Jeremiah Terminator LeRoy’ to close

TORONTO — The world premiere of David Mackenzie’s “Outlaw King,” starring Chris… Continue reading

Male model convicted of murdering rival after online feud

LONDON — A British fashion model has been convicted of murdering a… Continue reading

Red Sox old-timer’s memorabilia going up for sale

BIDDEFORD, Maine — Some items belonging to one of the Boston Red… Continue reading

Rival Korea leaders to meet in Pyongyang in September

SEOUL, Korea, Republic Of — The rival Koreas announced Monday that North… Continue reading

Charlottesville anniversary: Peaceful protests, few arrests

WASHINGTON — Thousands of people wanting to send a message that racism… Continue reading

‘I believe music heals people’: 12-year-old records tribute for shooting victims

YARMOUTH, N.S. — Twelve-year-old Josh Cochrane of Yarmouth, N.S., watched the news… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month