MillerCoors Reports Third Quarter Underlying Net Income Growth Of 9.6%

Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported that MillerCoors third quarter underlying net income, a non-GAAP measure, increased 9.6 percent to $377.5 million versus the same period in the prior year. This increase was driven primarily by higher net pricing, positive sales mix and lower cost of goods sold. MillerCoors sales-to-retail volume (STRs) decreased 4.0% in the third quarter and sales-to-wholesalers volume (STWs) was down 0.6%.

"Now that we are officially part of the Molson Coors Brewing Company, we are more focused than ever on getting to growth," said Gavin Hattersley, MillerCoors chief executive officer. "Joining forces with Molson Coors adds to the momentum we gained this quarter, as underlying net income grew and our premium light beers continued to gain segment share. While STR volumes were down this quarter, reflecting industry trends, we remain steadfast in our drive to achieve flat volume in 2018 and growth in 2019."

Third Quarter Highlights

Unless otherwise indicated, all amounts are in U.S. dollars and calculated in accordance with generally accepted accounting principles in the U.S. (U.S. GAAP). All market share references are per A.C. Nielsen. Percentages are versus the prior year comparable period and include MillerCoors operations in the U.S. and Puerto Rico.
  • U.S. GAAP net income was $369.2 million, up 16.7 percent.
  • Underlying net income, a non-GAAP measure, increased 9.6 percent to $377.5 million.
  • Total net sales increased 0.4 percent to $2.008 billion.
  • Domestic net revenue per hectoliter, excluding contract brewing and company-owned distributor sales, increased 1.6 percent.
  • Total cost of goods sold (COGS) per hectoliter decreased 0.9 percent.
  • Domestic sales-to-retail volume (STRs) decreased 4.0 percent.
  • Domestic sales-to-wholesalers volume (STWs) decreased 0.6 percent.

Brand Highlights for the Third Quarter

Miller Lite gained share of the Premium Light segment for the eighth consecutive quarter, but STRs were down mid-single digits. The brand recently brought back the limited release Steinie bottle, building on the success of the same seasonal release last year. The Steinie, available through the holiday season, will be supported through robust media support and a variety of on- and off-premise tools. The brand also launched new ads comparing the beer to its chief competitor, with all the commercials emphasizing that Miller Lite has "more taste, less calories and half the carbs."

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