Molson Coors Brewing Co. on Tuesday reported fourth-quarter earnings and 2007 year-end sales that exceeded analysts’ expectations, spurred by increased sales of Coors Light, Blue Moon and Keystone Light.
The company’s net income increased 74 percent to $173.2 million in the fourth quarter. Sales were up 4.5 percent in the U.S. compared with the previous year’s fourth quarter.
For fiscal 2007, sales increased 5.9 percent, compared with 2006, to $6.9 billion. Gross profit grew 5.2 percent, or $123.8 million, to $2.49 billion, and net income grew 37.7 percent to $497.2 million.
President and chief executive Leo Kiely said building the brands, reducing costs and staying focused contributed to this being the second consecutive year the company exceeded goals in double-digit earnings growth.
Kiely said the increase in sales of Coors Light came from restaurants and bars. An 8.5 percent jump in sales came from higher prices and more profitable brands.
Sales to retailers were up 5.5 percent, a significant showing compared with Budweiser and Anheuser-Busch, said Mariann Montagne, an analyst with Thrivent Asset Management in Minneapolis.
“Customer preferences these days in beer is toward the microbrews and independent and whatever is perceived as microbrew and independent,” Montagne said.
In the fall, Molson and SABMiller agreed to merge their U.S. operations in a deal that will be completed this year and is expected to save $500 million annually.
“There is a lot of positives,” Montagne said.
Thrivent manages $70 billion in assets, including Molson shares.
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
