May 6th, 2009
Earnings Report: MillerCoors announces first quarter results
Interesting news from the MillerCoors front.
On May 5th 2009, MillerCoors announced their first quarter earnings. Their results were positive, showing an increase in both their volumes and profits during the first quarter.
For the first quarter, underlying net income attributable to MillerCoors, excluding special items, increased 46.3 percent to $216.4 million from the prior year. The increase was driven by cost savings from the merger of Miller Brewing of Milwaukee and Coors Brewing of Colorado, strong revenue growth, disciplined cost management, and phasing of marketing expenditure, despite continuing commodity cost pressures.
MillerCoors total net sales increased by 3.8 percent to $1.72 billion. Excluding contract brewing and company-owned distributor sales, net sales increased 4.5 percent to $1.609 billion. Third-party contract brewing volumes declined 10 percent, though profits from contract brewing increased slightly.
MillerCoors domestic shipments-to-retailers (STRs) increased 0.4 percent because of strong results from five of the six focus brands, offset primarily by declines in Miller Lite and Milwaukee’s Best. Coors Light shipments were up in the low-single digits, while Miller Lite shipments decreased in the mid-single digits, which the brewer’s owners said was a reduced year-over-year rate of decline versus the previous quarter.
Shipments of the Miller Genuine Draft brand increased in the mid-single digits, driven by growth in the MGD 64 brand. The craft and import portfolio also rose in the first quarter, as Blue Moon continued to perform well with STRs up in the high-single digits.
After reporting a decrease of domestic sales (fell 2.3 over the three-month period ending in December) in the 4th quarter, they rebounded in the 1st quarter of 2009. Their 4th quarter price per share ended up to 71 cents ( on revenue of about $796.4 million) from their original guidance of 76 per share
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