First Quarter Profit for Molson – Coors
Molson Coors 1Q profit rises on stronger beer sales
DENVER â€” Molson Coors Brewing Co., one of the world’s largest brewers, today reported a jump in first-quarter profit as it sold more beer and boosted overall net sales 10.4 percent despite higher costs.
The results were released as the Denver-based company works on a plan to combine its U.S. operations with SABMiller. Its stock climbed nearly 8 percent in early trading.
Molson Coors said net income for the quarter that ended March 30 totaled $37.1 million, or 20 cents per share, compared with $4.4 million, or 3 cents per share, in the year-ago quarter.
The company took a $7.3 million charge related to expenses for its joint venture plan with SABMiller, employee retention and other costs. Excluding the charge, the company earned 32 cents per share.
Net sales rose to $1.36 billion from $1.23 billion as business improved in all three of Molson Coors’ key markets, Canada, the United States and even Great Britain, where it has faced a challenging business environment. The cost of goods per barrel rose 5.5 percent overall.
Analysts polled by Thomson Financial predicted a profit of 28 cents on net revenue of $1.31 billion.
In the United States, sales to retail stores rose 6.6 percent on double-digit growth in the craft beer Blue Moon, Coors Banquet and Keystone Light. Growth for Coors Light was in the mid-single-digit range.
In Canada, sales to retail stores rose 2.5 percent as the company posted double-digit growth for Coors Light, Creemore and Carling. It also reported a $9 million benefit in favorable currency exchange.
In Great Britain, the company credited a 1 percent increase in sales volume to the Easter holiday and consumers stocking up before a beer excise tax increase.
Molson Coors said it cut costs by $29 million in the quarter as part of a three-year program where it pledged to achieve $250 million in cost savings.
Its shares rose $4.31 to $57.47 in morning trading after rising to a 52-week high of $57.74 earlier in the session.