Molson Coors Brewing Co (NYSE: TAP)
Molson Coors on Tuesday reported better-than-anticipated fourth quarter earnings but missed on sales, sending its shares down as much as 7%. The company also said that accounting errors for deferred tax liabilities in 2016 and 2017 mean that a collective $247.7 million will hit retained earnings for calendar 2017.
Molson Coors restated 2016 and 2017 financial statements in its 2018 annual report, saying they were “not material”. TAP stock has gained 7% since the beginning of the year and lost 14% year-over-year.
TAP Earnings & Outlook
Molson Coors said fourth-quarter net income was $76 million, or $0.35 per share, down from $716.9 million, or $3.31 per share, in the earlier-year period. On an adjusted basis, the company posted earnings of $0.84 per share, well ahead of Refinitiv consensus of $0.79 per share.
Revenue came to $2.42 billion, down 6.2% year-over-year and below expectations of $2.54 billion, based on analysts polled by FactSet. A 2% brand volume decline in Canada and a 5.1% decline in the U.S. offset a 3.3% growth in Europe, while worldwide brand volume dropped 1.5%. The company said brand volume drop in the United States was primarily fueled by economy segments and premium light.
Molson Coors CEO Comments
“We accomplished much in 2018, delivering strong free cash flow and meeting our deleverage commitments, restoring underlying EBITDA growth in the quarter and second half, premiumizing our portfolio across regions including launching Truss our Canadian cannabis beverage JV, scaling volume and profitability in our fast growing International business and continuing to strengthen our European business,” said Mark Hunter, President and Chief Executive Officer of Molson Coors.
“Through the year we further scaled our cost saving program which insulated us in part from the effects of weaker industry demand in North America, higher than anticipated input inflationary pressures and challenges associated with the implementation of our U.S. brewery supply chain system.”
Molson Coors Brewing Co. Profile
Molson Coors Brewing Co. is a holding company, which engages in the provision of beer. It operates through the following segments: United States, Canada, Europe, International, and Corporate. The United States segment consists of production, marketing and sales of its brands, and other owned and licensed brands in the United States.
The Canada segment includes production, marketing and sales of its brands, and other owned and licensed brands in Canada. The Europe segment comprises of production, marketing and sales of its brands as well as a number of regional brands in the United Kingdom, Republic of Ireland, and Central Europe.
The International segment focuses its operations on Latin America, Europe, Asia Pacific, and Africa. The Corporate segment represents interest and certain other general and administrative costs that are not allocated to any of the operating segments. The company was founded in 1873 and is headquartered in Denver, CO. – CNN Money
