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Post date: 08/04/2016 - 09:23

Molson Coors' Q2 performance by region

Molson Coors reported a dip in second-quarter net profits, blaming charges in connection with its MillerCoors acquisition as well as prohibition in parts of India and planned brewery closures.

Take a closer look at the brewer's Q2 performance by region:

US (MillerCoors)

MillerCoors blamed shipment timings for a weak Q2 that dragged down the first-half, but praised its light beer performance. Net profits slipped 3% to US$764.8m in the six months to the end of June, the company said. Net sales were down 1% to $3.94bn while operating profits fell 4% to $772.2m.

Molson Coors reported a dip in second-quarter net profits, blaming charges in connection with its MillerCoors acquisition as well as prohibition in parts of India and planned brewery closures.

Take a closer look at the brewer's Q2 performance by region:

US (MillerCoors)

MillerCoors blamed shipment timings for a weak Q2 that dragged down the first-half, but praised its light beer performance. Net profits slipped 3% to US$764.8m in the six months to the end of June, the company said. Net sales were down 1% to $3.94bn while operating profits fell 4% to $772.2m.

MillerCoors' light beer brands, Miller Lite and Coors Light, continued their turnaround to post a second consecutive quarter of flat sales-to-retail volumes.

Canada

Molson Coors Canada sales volumes decreased 0.8% in the second quarter. Net sales per hectolitre increased 1.2% in local currency, driven primarily by positive pricing, the company said.

Operating profits before income tax were down 16.6% to $88.5m in the second quarter of 2016 compared to the prior year, due to higher brand investments.

Underlying pretax profits decreased 21.3% to $89.9m, driven by higher brand investment.

Europe

Sales volumes increased 1.6%, driven by the addition of the Staropramen and Rekorderlig brands in the UK, Molson Coors said. Net sales per hectolitre in the region were up 1.3% in local currency.

Operating profits before income tax in Europe were up 20.4% to $59m in Q2, driven by $16.8m of lower "special charges" related to decreased net contract termination charges and brewery closure costs, the company said.

Underlying pretax profits decreased 10% to $61.3m due to higher brand investments and amortisation expenses, lower net pension benefit, the termination of the Heineken contract brewing arrangement in the UK, and unfavourable foreign currency movements, the company said.

International

Total sales volumes decreased 9.3%, driven by prohibition measures in Bihar, India, the transfer of Staropramen in the UK to the European unit and restructuring in China. Gains came from double-digit volumes increases for Coors Light, led by Latin America, including the brand's launch in Colombia, as well as volumes growth in Japan.

Net sales per hectolitre increased 42.5%, driven by lower price promotion expense in China and favourable sales mix changes, the company said.

The International unit reported an operating loss, before income taxes, of $33.4m in Q2, compared to $12.2m in the year prior. Molson Coors said this was primarily down to prohibition in Bihar.

The International unit recorded a pretax loss of $2.6m, versus a $5.8m loss in the same period the year prior. Improvement was driven by volume growth Latin America and Japan and favourable sales mix, as well as lower price promotion and overhead expenses due to the restructuring of its China business.