This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Molson Coors Reports Higher Net Sales And Underlying After-Tax Income For The Second Quarter

Stocks in this article: TAP

U.K. STRs decreased 7.9 percent due to a weak U.K. off-premise channel impacted by poor weather and increased competitor promotional activity. With U.K. beer industry volumes declining approximately 5 percent, our market share declined in the quarter, driven by the lower-margin off-premise channel.

Net sales per hectoliter increased 5 percent in local currency primarily due to the positive impact of increased sales of non-owned (factored) beverages. Pricing on owned brands was negative, driven by lower pricing in the off-premise as a result of continuing competitive market dynamics, partly offset by positive pricing in the on-premise.

COGS per hectoliter increased 13 percent in local currency, with more than two-thirds of the increase due to higher factored product costs. The rest of the change was driven by input inflation, higher pension costs and fixed-cost deleverage from lower volumes. Factored product costs were unusually high in the second quarter, and we anticipate they will decrease slightly in the third quarter.

MG&A expenses decreased nearly 14 percent in local currency, due to lower employee incentive costs and cost reduction initiatives, partly offset by higher marketing investments and pension expense this year.

International Business

The International segment posted an underlying pretax loss of $13.4 million in the second quarter, up from $10.1 million a year ago due to the addition of costs related to the Cobra India business and infrastructure investments and the effect of asset-value and cost adjustments in our China joint venture.

International STRs increased 36 percent due to the addition of India sales, along with Carling growth in the Ukraine and Coors Light growth in Latin America. Excluding royalty sales (primarily in Mexico and Europe), International volume grew 32.2 percent. Net sales increased nearly 32 percent, driven by volume growth. Cost of goods per hectoliter increased 8 percent, with nearly two-thirds due to asset-value and cost adjustments in our China joint venture, and the remainder due to sales mix and input inflation.

5 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs