Molson Coors shows higher revenue, profit

Coors Light and Molson Canadian bottles of beer are displayed in Denver in this November 2010 file photo. (AP Photo/Ed Andrieski)

MONTREAL -- Molson Coors Brewing Co.'s continuing operations delivered a US$276.7-million profit in the second quarter, handily beating analyst estimates, as the company recorded fewer acquisition-related items and higher sales volumes than last year.

The North American beer maker (NYSE:TAP) (TSX:TPX.B) said Tuesday its profit from continuing operations in the second quarter was equal to $1.50 per share, up from $1.38 per share a year earlier.

Including discontinued operations, Molson Coors had US$1.51 per share or $278.4 million in net income in the most recent quarter, up from 57 cents per share or $105.1 million a year before.

Adjusting for numerous items, Molson Coors had US$278.6 million or $1.51 of after-tax income in the second quarter of this year, up from $250.1 million or $1.38 per share, and 13 cents ahead of analyst estimates.

Worldwide sales volume in the second quarter for Molson Coors was up 20.2 per cent, while net sales were up 17.9 per cent from a year earlier -- mostly as a result of a European acquisition last year.

However, Canadian sales to retailers were down 4.3 per cent and sales volume for Molson Coors Canada fell 2.6 per cent, which the company attributed the weak Canadian market to unfavourable weather in key regions.

"We delivered these results despite weak consumer demand and poor weather across all of our markets," Molson Coors chief executive officer Peter Swinburn said in a statement.

"In the remainder of the year, we expect consumer demand to remain weak. Despite this, we plan to increase our marketing investments behind our core brands and innovation in order to drive long-term total returns for our shareholders."

Molson Coors, which reports in U.S. currency, had $104.3 million or 57 cents per share of income from continuing operations in the second quarter of 2012.

Analysts had estimated US$1.38 per share of adjusted earnings, according to analysts polled by Thomson Reuters.

Overall, the company's revenue was up 23 per cent to US$1.2 billion due primarily to the StarBev acquisition in Central and Eastern Europe .

The industry has shown signs of weakness in the quarter with shipments continuing to fall, hurt by consumer drinking changes and poor weather.

But the Montreal and Denver-based brewer had also won a legal battle in June when an Ontario court granted a temporary injunction preventing Miller Brewing Co. from terminating its Canadian licensing agreement with Molson Coors until a trial on the matter scheduled for later this year.

The agreement covers such well-known brands as Millers Genuine Draft, Miller Lite and Miller High Life.

Miller, a subsidiary of SABMiller plc, a multinational with headquarters in the United Kingdom, wants to develop the brands in Canada on its own and intended to terminate the agreement with Molson Coors on July 22, saying it had given the required six-month notification.

Molson Coors has a portfolio of more than 65 strategic and partner brands, including Coors, Coors Light, Molson Canadian, Carling, Blue Moon, Keystone and Richard's.

The Molson Coors Brewing Co. was formed in 2005 following the merger between North American family-run breweries Molson Inc. and the Adolph Coors Company.

It employs 15,000 people at 18 breweries and operations in more than 30 countries.