Molson Coors Brewing Co. on Tuesday reported a jump in first-quarter profit as its sales rose more than 10 percent on growth in its U.S. and Canadian businesses.
The results were released as the Denver- based company works on a plan to combine its U.S. operations with SABMiller. The companies hope to have the deal finalized by midyear pending government approval.
Chief executive Leo Kiely, who will head the joint venture, said it will help reduce the distance from brewery to market by one-third, and costs.
Molson Coors shares climbed more than 7 percent in late-afternoon trading. It 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 SABMiller deal, employee retention and other costs. Excluding the charge, the company earned 32 cents per share.
Net sales after excise taxes 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 Great Britain, where it has faced a challenging business environment.
The cost of goods per barrel rose 5.5 percent overall.
The Associated Press
