Molson Coors reports sales of over $11 billion in 2017

US beer giant Molson Coors has seen its sales for last year rise by 0.2% to reach over US$11 billion, reporting a profit of $1.41 billion, the equivalent of $6.53 per share.

Releasing both its full year and fourth quarter results, Molson Coors revealed that net sales increased by 2.58 billion in the three months to 31 December 2017, an increase of 4.5% which it attributes to “positive global pricing, royalty volume and foreign currency, along with cycling a $50 million indirect tax provision from a year ago”.

Net sales per hectolitre also rose in the fourth quarter, compared to the same period last year, increasing by 5.8% to $111.89, driven by “positive global pricing, higher royalty revenue, favourable foreign currency movements and cycling an indirect tax provision from a year ago”.

These increases are in contrast to US sales to retailers which declined by 3% in volume in the three months to 31 December 2017 due to lower volume sales in the “premium light segment”.

Worldwide brand volume decreased by 1.1% to 22.4 million due to lower volume sales in the U.S. and internationally which was partially offset by growth in the European and Canadian markets.

Canada saw brand volume increase by 0.8% in the fourth quarter boosted by higher sales of import and craft brands while revenue net sales per hectolitre were up 1% in local currency.

In Europe meanwhile, brand volume increased 10.4% which Molson Coors states was aided by “the transfer of royalty and export brand volume across Europe from our International business, along with growth from our above-premium brands”.

European net sales per hectolitre also increased by 16.3% in local currency.

International performance took a hit following the loss of the Modelo contract in Japan. International brand volume fell by 15.1% in the fourth quarter, however, net sales per hectolitre increased by 6.1% aided by “sales mix changes and positive pricing”.

Molson Coors president and CEO Mark Hunter said: “Across Molson Coors, against a backdrop of integration and challenging market conditions during 2017, we delivered financial and commercial results that demonstrate our balanced priorities for bottom- and top-line growth are working.

“For the full year 2017 versus pro forma 2016 results, we over-delivered on costs savings and free cash flow and optimised commercial spending, delivering strong net income growth, underlying EBITDA margin expansion of 77 basis points, and underlying EBITDA growth of 3.7 percent.

“We also strengthened our balance sheet by more than $900 million through debt pay-down and pension contributions as part of our deleverage strategy. This was complemented by an improving top line, with global brand volume growth of 1 percent and net sales per hectolitre growth of 2.6 percent, driven by revenue management and portfolio premiumisation. We also grew market share in Canada and Europe for the year and delivered positive underlying EBITDA in our International business”.

Molson Coors also reported more than $255 million in cost savings in 2017, projecting about $200 million in benefits this year due to the recently passed U.S. tax code reform.

There was no mention of California’s Stone Brewing Co. lawsuit against Molson Coors’ US subsidiary MillerCoors regarding what the former calls its over its emphasis of the word “stone” in its Keystone Light rebrand.