- Underlying net income (a non-GAAP measure) increased 9.5 percent to $1.223 billion for the year and decreased 4.2 percent to $185.8 million for the fourth quarter.
- Total net sales increased 2.8 percent to $7.761 billion for the year and 1.7 percent to $1.784 billion for the quarter.
- Domestic net revenue per barrel, excluding contract brewing and company-owned distributor sales, increased 3.5 percent for the year and 2.9 percent for the quarter.
- Total cost of goods sold (COGS) per barrel increased 1.4 percent for the year and 1.6 percent for the quarter.
- Domestic STRs decreased 1.3 percent for the year and 1.1 percent for the quarter.
- Domestic sales-to-wholesalers (STWs) decreased 1.1 percent for the year and 1.3 percent for the quarter.
Tenth and Blake Beer Company grew the MillerCoors Craft and Import portfolio by double digits in the quarter and the full year, driven by Blue Moon Brewing Company and Jacob Leinenkugel Brewing Company. Due primarily to the superior performance of Summer Shandy, Leinenkugel’s grew double digits for the year and other offerings, such as Snowdrift Vanilla Porter were drivers of Leinenkugel’s double-digit growth for the quarter. Blue Moon grew double digits for the year and high-single digits for the quarter. Peroni Nastro Azzurro once again delivered strong results, growing mid-single digits in the quarter and high-single digits for the year.The MillerCoors Economy portfolio showed improvement for the fourth quarter over the prior two quarters in 2012, declining mid-single digits for the year and low-single digits for the quarter. Miller High Life continued its veterans program and will kick off a partnership with Harley Davidson in mid-2013. Keystone Light continued to drive its “Always Smooth” positioning primarily through digital engagement and localized marketing efforts. The brand will launch new packaging in early 2013. The Premium Regular portfolio showed its best performance since 2008, down low-single digits for the quarter and down mid-single digits for the year. Miller Genuine Draft’s double digit decline was partly offset by continued growth of Coors Banquet, the only national Premium Regular brand in the industry to gain market share in the quarter, versus prior year. Coors Banquet grew high-single digits for the quarter and mid-single digits for the year, delivering its sixth straight year of volume growth. Financial Highlights for the Fourth Quarter and Full Year Domestic net revenue per barrel grew 3.5 percent for the year and 2.9 percent for the quarter as a result of strong net pricing and favorable mix. Total company net revenue per barrel, including contract brewing and company-owned distributor sales, increased 3.3 percent for the full year and 2.9 percent for the quarter. Third-party contract brewing volumes were up 5.2 percent for the year and down 0.4 percent for the quarter.
Total COGS per barrel increased 1.6 percent for the quarter, driven by commodity inflation and packaging innovation, partially offset by strong cost savings.Marketing, general and administrative costs increased 3.4 percent for the year and 6.4 percent for the quarter, driven primarily by increased marketing media investments in support of our premium light portfolio. In the fourth quarter, $25 million of cost savings were achieved, primarily related to procurement savings and brewery efficiencies. Depreciation and amortization expenses for MillerCoors in the fourth quarter were $70.3 million, and additions to tangible and intangible assets totaled $178.5 million. A $15.4 million write-off of Information Systems assets related to the Business Transformation project was recorded as a special item in the quarter. Overview of MillerCoors Built on a foundation of great beer brands and nearly 300 years of brewing heritage, MillerCoors continues the commitment of its founders to brew the highest quality beers. MillerCoors is the second-largest beer company in the United States, capturing nearly 30 percent of beer sales in the U.S. and Puerto Rico. Led by two of the best-selling beers in the industry, MillerCoors has a broad portfolio of brands across every major industry segment. The portfolio is led by the company’s premium light brands: Coors Light, Miller Lite and Miller64. Coors Light, the World’s Most Refreshing Beer, offers consumers refreshment as cold as the Rockies. Miller Lite established the American light beer category in 1975, offering beer drinkers a light beer that tastes like beer should. Miller64 is 64 calories of crisp, light taste that complements a balanced lifestyle. MillerCoors brews premium beers Coors Banquet and Miller Genuine Draft, and economy brands Miller High Life and Keystone Light. Tenth and Blake Beer Company, MillerCoors craft and import division, imports Peroni Nastro Azzurro, Pilsner Urquell and Grolsch and features craft brews from the Jacob Leinenkugel Brewing Company, Blue Moon Brewing Company and the Blitz-Weinhard Brewing Company. MillerCoors operates eight major breweries in the U.S., as well as the Leinenkugel’s craft brewery in Chippewa Falls, Wisc., and two microbreweries, the Tenth Street Brewery in Milwaukee and the Blue Moon Brewing Company at Coors Field in Denver. MillerCoors vision is to create the best beer company in America through great people changing the way America enjoys beer. MillerCoors builds its brands the right way through brewing quality, responsible marketing and sustainable environmental and community impact. MillerCoors is a joint venture of SABMiller plc and Molson Coors Brewing Company. Learn more at MillerCoors.com, at facebook.com/MillerCoors or on Twitter through @MillerCoors.
Overview of SABMillerSABMiller plc is one of the world’s leading brewers with more than 200 beer brands and some 70,000 employees in over 75 countries. The group’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch; as well as leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland). SABMiller also has growing soft drinks businesses and is one of the world’s largest bottlers of Coca-Cola products. In the year ended 31 March 2012, the group reported EBITA of US$5,634 million and group revenue of US$31,388 million. SABMiller plc is listed on the London and Johannesburg stock exchanges. For more information on SABMiller plc, visit the company's website: www.sabmiller.com. Overview of Molson Coors Molson Coors Brewing Company is one of the world’s largest brewers. It brews, markets and sells a portfolio of leading premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Staropramen, Carling, Coors Banquet and Keystone Light in North America, Europe and Asia. For more information on Molson Coors Brewing Company, visit the company’s web site: www.molsoncoors.com. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws, and language indicating trends, such as “anticipated” and “expected.” It also includes financial information, of which, as of the date of this press release, the Companies’ independent auditors have not completed their audit. Although the Companies believe that the assumptions upon which their respective financial information and their respective forward-looking statements are based are reasonable, they can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Companies’ projections and expectations are disclosed in Molson Coors’ filings with the Securities and Exchange Commission or in SABMiller’s annual report and accounts for the year ended March 31, 2012, and in other documents which are available on SABMiller’s website at www.sabmiller.com . These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; failure to realize anticipated results from synergy initiatives; and increases in costs generally. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Neither SABMiller nor Molson Coors undertakes to update forward-looking statements relating to their respective businesses, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statement. Neither SABMiller nor Molson Coors accepts any responsibility for any financial information contained in this press release relating to the business or operations or results or financial condition of the other or their respective groups. MillerCoors Results and Related Reconciliations The table below reconciles net income attributable to MillerCoors, reported in accordance with U.S. GAAP as used for inclusion within Molson Coors reported results, to MillerCoors EBITA as used for inclusion within SABMiller’s reported results in accordance with IFRS. Underlying net income and EBITA are non-GAAP measures. Management of both companies believes that underlying net income and EBITA provide shareholders with a useful basis for assessing the profit performance of MillerCoors. There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similarly named non-GAAP measures whose calculations may differ from the company’s calculations.
|Three Months Ended||Twelve Months Ended|
|(In millions of $US)||Dec 31, 2012||Dec 31, 2011||Dec 31, 2012||Dec 31, 2011|
|U.S. GAAP : Net Income Attributable to MillerCoors||$||170.4||$||194.0||$||1,190.9||$||1,003.8|
|Plus: Special/Exceptional Items 1||15.4||-||31.8||113.4|
|Tax effect of the adjustments to arrive at underlying net income 2||-||-||-||(0.4||)|
|Non-GAAP Underlying Net Income||$||185.8||$||194.0||$||1,222.7||$||1,116.8|
|Plus: Adjustments to IFRS Underlying EBITA 3||11.9||39.6||107.3||140.2|
|IFRS : MillerCoors underlying earnings before interest, taxes and amortization before exceptional items (EBITA 4)||$||197.7||$||233.6||$||1,330.0||$||1,257.0|
|Percent change versus prior year MillerCoors underlying EBITA 4||-15.4||%||5.8||%|
|1 Current year Special/Exceptional items include a pension curtailment gain and the write-off of assets related to the Home Draft package as well as information systems assets. Prior year includes a write-down in the value of the Sparks brand, a charge related to the planned assumption of a multi-employer pension plan and integration charges related to the MillerCoors Joint Venture.|
|2 The tax effect of the adjustments to arrive at underlying net income attributable to MillerCoors, a non-GAAP measure, is calculated based on the estimated tax rate applicable to the item(s) being adjusted in the period in which they arose.|
|3 U.S. GAAP Underlying net income to IFRS EBITA adjustments relate to differing treatment of step-up depreciation, pension, post-retirement benefits, consolidation of container joint ventures, asset disposals, share-based compensation, severance expenses and certain Special Items between U.S. GAAP and IFRS. Amortization of intangible assets, interest, taxes and non-controlling interest have been removed to arrive at underlying EBITA.|
|4 EBITA - Earnings Before Interest, Taxes, and Amortization, excluding exceptional items.|
|RESULTS OF OPERATIONS|
|(VOLUMES IN THOUSANDS, DOLLARS IN MILLIONS $US)|
|Three Months Ended||Twelve Months Ended|
|Dec 31, 2012||Dec 31, 2011||Dec 31, 2012||Dec 31, 2011|
|Volume in Barrels||14,823||15,000||65,020||65,321|
|Cost of Goods Sold||(1,106.8||)||(1,102.8||)||(4,689.7||)||(4,647.9||)|
|Marketing, General and Administrative Expenses||(484.4||)||(455.1||)||(1,828.5||)||(1,768.6||)|
|Special Items, net||(15.4||)||-||(31.8||)||(113.4||)|
|Other Income (Expense), net||(3.2||)||0.7||0.3||1.2|
|Income Before Income Taxes and Non-controlling Interests||174.0||196.7||1,211.4||1,021.5|
|Net Income Attributable to Non-controlling Interests||(1.9||)||(1.2||)||(15.0||)||(10.2||)|
|Net Income Attributable to MillerCoors LLC||$||170.4||$||194.0||$||1,190.9||$||1,003.8|