Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a 20.2 percent increase in second quarter worldwide beer volume and 17.9 percent higher net sales in the second quarter of 2013 due to the June 2012 acquisition of the company’s Central Europe operations. Underlying after-tax income increased 11.4 percent for the second quarter 2013, driven by the addition of a full quarter of Central Europe operating results this year, along with a lower effective tax rate and improved financial performance in our Europe and International businesses this year. The reduction in tax rate was primarily attributable to changes in Canada tax legislation during the quarter. Net income from continuing operations attributable to MCBC (a U.S. GAAP earnings measure) increased 165.3 percent due to the same factors affecting underlying after-tax income, together with a $172 million reduction in special and other non-core expenses primarily related to the Central Europe acquisition last year.
Molson Coors president and chief executive officer Peter Swinburn said, “In the second quarter, Molson Coors delivered double-digit underlying earnings growth – and more than 165 percent growth on a U.S. GAAP basis. This underlying income growth was driven by earnings accretion from the Central Europe acquisition that we completed during June last year and improved financial performance in our Europe and International businesses, along with a lower quarterly tax rate this year. We also generated strong free cash flow and reduced our net debt by $373 million in the quarter. We delivered these results despite weak consumer demand and poor weather across all of our markets. Most of our key brands in core markets gained or held share versus a year ago. Our results also benefited from the introduction of brand and packaging innovations globally and from the strength of our above-premium brands, which gained market share in each of our businesses.”