Molson Coors Brewing Co.’s third-quarter earnings fell 39 percent as the beer company’s results were hurt by a write-down tied to two European brands and revenue weakened slightly.
Chief Executive Peter Swinburn said consumer demand was weak across the company’s markets in the latest period, as expected, though the company has continued to invest in core brands.
The Denver-based maker of Coors Light and Molson Canadian last year acquired Central and East European brewer Starbev LP for $3.4 billion, a deal that had bolstered overall sales the past few quarters. However, Molson has been stung by weak consumer demand for some of its beers, as well as poor weather across some of the company’s markets during the key summer selling season.
The company noted its adjusted earnings improved, driven partly by a lower interest expense and tax rate compared with a year earlier.
Molson Coors reported a profit of $121.8 million, or 66 cents a share, down from $198.4 million, or $1.09 a share, a year earlier. The latest period’s results were hurt by a $150.9 million noncash write-down of the value of two brands in the company’s Europe business. Excluding special items, earnings rose to $1.45 from $1.37. Net sales after excise taxes slipped 2% to $1.17 billion.
Analysts polled by Thomson Reuters had expected an adjusted profit of $1.39 a share and revenue of $1.21 billion.
MillerCoors LLC, the U.S. joint venture with SABMiller PLC, reported a profit of $348.8 million, up from $306.9 million. Excluding special items, MillerCoors’ income rose 12 percent to $363.8 million, due to stronger pricing, brand mix and cost reductions. Net sales after excise taxes rose 2.9 percent to $2.05 billion.
Both Molson Coors and MillerCoors reported slightly weaker volumes for the latest period.
Molson Coors’ Europe segment’s underlying pretax income increased 5.7 percent, while the international segment posted a narrower loss due to the timing of marketing investment in Japan, improved profit in China and lower overhead costs.
