Molson Coors Brewing Co.’s first-quarter slumped 14.2 percent to $700 million amid weaker beer volume and a strong dollar, the Denver-based beer giant reported Thursday.
During the quarter that ended on March 31, Molson Coors reported a net income of $79.2 million, or 42 cents per diluted share, on $700 million in revenue. Last year, Miller Coors reported $165.3 million quarterly income, which included a $52.5 million benefit resulting from the termination of the Modelo Molson joint venture, on $816 million in revenue.
Analysts polled by Thomson One projected a net income of $83.52 million and revenue of $718.21 million for the most-recent quarter.
“Our results for the first quarter reflect continued volume pressure in our largest markets and, as expected, a significant impact from foreign currency movements, a higher tax rate, and terminations of business contracts, all of which we discussed on our last earnings call,” Mark Hunter, Molson Coors’ president and chief executive officer, said in a statement.
Hunter continued, saying the company would remain resolute in actions such as transforming its portfolio to the “above-premium segment,” or craft beer market.
Hunter that Molson Coors will continue to eye acquisitions, but also plans to add to its internal portfolio of craft beers via its boutique breweries. MillerCoors’ Blue Moon Brewing also is moving forward on a in Denver’s burgeoning River North district.
The booming craft industry — defined as independently operated producers that brew under 6 million barrels of beer annually — has an 11 percent volume share of the U.S. beer industry, according to data from the Brewers Association, an industry trade association based in Boulder.
Craft breweries’ volume and dollar sales grew by 18 percent and 22 percent, respectively, in 2014. Retail sales totaled $19.6 billion.
Alicia Wallace: 303-954-1939, awallace@denverpost.com
