A whole lotta foam.
Molson Coors Brewing’s earnings missed the mark for the fourth consecutive quarter, as a weak economy dragged on sales and the company had higher marketing expenses. Q3 EPS was $1.14 on net sales of $954.4 million while analysts were looking for $1.25 on $943.9 million.
CEO Peter Swinburn said, “We continued to face high unemployment among core beer consumers, lower volume and significant commodity inflation.”
Gross margin fell to 42.3% from 47.7% as the cost of goods sold rose by 20% while worldwide beer volume slipped 0.8% to 13.13 million hectolitres. MillerCoors, the combined U.S. operations of SABMiller (SAB) and Molson Coors, saw its beer sales drop by 2.5% to $1.965 billion and its net income fall by 14.1% to $268.9 million.
Commenting on the results, MillerCoors CEO Tom Long said, “Despite the toughest headwinds we’ve seen as a company, we slightly improved our sales to retailer trend this quarter versus last quarter and continued to deliver our cost savings commitments.”
Molson Coors Brewing (TAP : NYSE : US$39.00), Net Change: -1.33, % Change: -3.30%, Volume: 3,206,661
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