DENVER—Molson Coors Brewing and SABMiller said Tuesday fourth-quarter profit for their joint venture MillerCoors declined 40 percent mainly due to hefty impairment charges related to its Sparks brand and costs to integrate the two companies’ beer brands in the U.S.
MillerCoors earnings fell to $54.1 million from an adjusted profit of $90.7 million in the year-ago period.
Excluding integration charges related to the joint venture and the Sparks brand, profit climbed to $135 million from $116 million a year ago.
MillerCoors agreed in December to change its Sparks brand to remove caffeine, taurine, guarana and ginseng from its Sparks drink after a dozen state attorneys general complained the drink targeted young drinkers.
Revenue for MillerCoors grew 3.1 percent to $1.74 billion.
Sales to retailers dropped 2.3 percent on weakness in Miller Lite and some above-premium brands.
Domestic net revenue per barrel climbed 8 percent.
Molson joined forces with SABMiller’s U.S. unit this summer to save on costs and better compete against industry leader Anheuser-Busch. MillerCoors, which makes brands like Miller Lite and Coors Light and markets them in the U.S. and Puerto Rico, has said it expects to save $500 million over three years and $50 million in the first year of operation.
Molson Coors also said Tuesday its fourth-quarter earnings from continuing operations fell 49 percent on a stronger dollar, commodity inflation and lower sales volumes.
Shares of Molson Coors fell $2.62, or 6.5 percent, to $37.88 in morning trading. The stock has ranged from $35 to $59.51 over the past year.
