Molson Coors recorded a net sales decrease of 2.1% in the third quarter of the year compared to the same period last year, but saw volumes rise in Europe.
Total net sales in the three months to 30 September were $2.88 billion, down from $2.94 billion in 2016. Its global brand volume of 25.5 million hectolitres increased 0.6%, due to growth in Europe (up 9.6%) and the company’s International Unit (up by 64.7%).
The US-Canadian company posted a decrease in net income of 12.1% to $280 million, which was said to be a result of ‘a higher tax rate, lower financial volume, higher brand amortisation, and higher general and administrative costs’.
In its US business, its largest unit, sales were down 5.5%, but pre-tax income increased by 5.3%.
Earlier this year, Molson Coors chief executive Mark Hunter warned that 2017 would be a transition year following completion of the MillerCoors transaction in 2016.
Speaking of the third-quarter results, he said: “Despite challenging market conditions in North America, we remain on track to deliver our 2017 business and financial plans and exceed our original cost savings targets and cash flow goals, as well as maintain our investment-grade debt ratings.
“Year to date, we have delivered worldwide brand volume growth, driven by our global priority brands, and on a constant-currency basis, NSR per hectolitre is up more than 2%, as our focus on portfolio premiumisation has driven pricing and mix benefits.”
He added: “For the medium term, we continue to expect underlying EBITDA margins to increase an annual average of 30 to 60 basis points over the next three to four years. For 2017, we anticipate margins being in this range.”
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