Molson Coors Brewing Q4 Adj. Profit Misses Estimates
Molson Coors Brewing Co. (TAP, TPX.TO) reported a profit for the fourth-quarter that climbed from the prior year. It also reported a 16.4 percent increase in underlying after-tax income on a pro forma basis for the fourth quarter of 2016, driven by higher income in the U.S. and improved performance in International, partially offset by the indirect tax provision in Europe. Quarterly adjusted earnings per share missed analysts' expectations.
In the Tuesday's pre-market trade, TAP is trading at $93.59, down $2.62 or 2.72%.
Net income attributable to the company for the fourth-quarter climbed to $1.44 billion or $6.65 per share from $32.8 million or $0.18 per share in the same quarter last year.
Net loss from continuing operations attributable to the company was $608.1 million on a pro forma basis for the fourth quarter, compared to $6.7 million of net income a year ago. The latest-quarter result was hurt by an impairment charge recorded for the Molson brands in Canada, higher U.S. GAAP tax expense, and an indirect tax provision recorded in Europe.
Non-GAAP Underlying after-tax income for the quarter grew to $99.3 million or $0.46 per share from $90.6 million or $0.49 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.85 per share for the quarter. Analysts' estimates typically exclude special items.
On a Pro Forma basis, Worldwide beer volume of 22.1 million hectoliters in the fourth quarter increased 1.2 percent versus the prior year.
Net sales for the quarter surged to $2.29 billion from $844.4 million last year. On a Pro Forma basis, net sales were $2.468 billion, decreased 4.2% on a reported basis, and decreased 2.2% in constant currency. Wall Street analysts had a consensus revenue estimate of $2.57 billion.
MillerCoors domestic sales-to-retailers volume (STRs) declined 2.5 percent for the year and 2.8 percent for the trading-day-adjusted quarter, driven by lower volume in the Below Premium and Premium Light segment.
Canada STR volume decreased 3.5 percent in the fourth quarter, driven by lower consumer demand, particularly in Quebec. Canada financial volume, which includes contract brewing volume, decreased 4.3 percent. Net sales per hectoliter increased 0.6 percent in local currency, due primarily to positive pricing and brand mix, partially offset by mix shift toward lower-revenue packages and contract brewing volume.
Europe owned, licensed and royalty sales volume increased 2.5 percent in the fourth quarter versus a year ago. Europe financial volume, which includes contract brewing and factored brands, increased 0.3 percent. Europe net sales per hectoliter decreased 9.8 percent in local currency, due to an approximate $50 million indirect tax provision established in the quarter related to an ongoing legal dispute. The decrease was partially offset by positive net pricing.
Total International owned and royalty sales volume increased 82.5 percent in the fourth quarter, driven by the addition of the Miller global brands, along with Coors Light growth in Latin America and Australia. Net sales per hectoliter increased 11.1 percent, driven by higher pricing, favorable sales mix changes and foreign currency movements. (dpa)
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