Molson Coors Q2 profit dives 24.1%
Beermaker says the pending acquisition of MillerCoors from Anheuser-Busch InBev and flat sales were factors in the decline.
MONTREAL — Molson Coors Brewing is reporting a 24.1% decline in profit from its continuing operations for this year’s second quarter.
Under US accounting rules, the beer company’s net income in American currency dropped to US$174.1 million. That’s down from $229.3 million in last year’s second quarter.
The American-Canadian multinational says a major factor was special items related to its pending acquisition of the remaining 58% of MillerCoors from Anheuser-Busch InBev.
There were also operational and market issues in other parts of its far-flung business, including declines in profits from its Canadian operations, an alcohol prohibition in the Indian state of Bihar, and restructurings in Europe and China.
Worldwide beer volume decreased 0.8% and net sales fell 1.9% to US$986.2 million, including the impact of currency fluctuations. On a constant-currency basis, sales would have been up 1.9%.
Sales from Canada were down US$1.9 million before currency adjustments, European sales were down US$2.2 million.
After adjustments, Molson Coors says it had $239.5 million of underlying after-tax income – down from $263.8 million.
Molson Coors announced several leadership appointments Aug. 1 at MillerCoors and its Canadian subsidiary once the transaction is completed.
Among the, there will be a new president and CEO at Molson Coors Canada, as Stewart Glendinning takes on those roles at Molson Coors International.
The current president and CEO of Molson Coors International – Kandy Anand – will be responsible for MillerCoors’ global growth.
The new president and CEO of Molson Coors Canada will be Frederic Landtmeters, the current managing director of Molson Coors UK and Ireland.
The company said Landtmeters “will be responsible for continuing the transformation of that business in order to reignite growth.”News from © Canadian Press Enterprises Inc. 2016