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News
Currency blamed for Molson sales drop
Beer producer Molson Coors has turned to “unfavourable” currency movements to explain an expected fourth quarter sales drop.
(Photo: Flickr)
Value sales are expected to be in the range of $830-$860 million in the three months to 31 December, down from a year ago.
“Foreign currency movements, increased brand investments, and the impact of the loss of our Modelo brands and Heineken brewing contracts in the UK” have contributed to the sales drop, the company said in a statement to investors.
However, the Coors Light and Beck’s brewer upgraded its expected full-year underlying cash flow to between $690m and $720m from $550m-$605m.
A better-than-expected fourth quarter with lower cash taxes and expenditure is behind the improved forecast, plus benefits arising from its recent takeover of the US MillerCoors venture, which it previously shared with SABMiller.
Full-year cash flow will still be down significantly from 2014, when it posted $956.7m, because of its investment in MillerCoors.
Molson Coors will present its full-year and fourth quarter results on 11 February.