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Molson Coors 1Q profit more than doubles to $75.7M

Molson Coors 1Q profit more than doubles to $75.7M

Molson Coors Brewing Co. said Tuesday its first-quarter profit more than doubled, though sales of its beers fell in its stronghold of Britain and stagnated in Canada.
The Denver-based maker of Coors Light said it earned $75.7 million, or 41 cents a share, in the three months that ended March 29. That compares to earnings of $34.3 million or 19 cents a share, in the same period last year _ before Molson Coors and SABMiller PLC formed their joint venture MillerCoors.
Excluding one-time charges, the company earned 53 cents per share, higher than the 33 cents predicted by analysts, according to Thomson Reuters.
Molson Coors said its net sales _ total sales less excise taxes _ came to $559 million in the quarter, down from last year's $1.36 billion. But last year's figure includes the U.S. business which has since joined up in the MillerCoors venture. Analysts expected revenue of about $568 million.
Shares of Molson Coors rose $4.05, or 11 percent, to $42.55 in morning trading Tuesday. Deutsche Bank-North America analyst Marc Greenberg wrote to clients that the better than expected earnings should be received well, "given concerns regarding Canada, currency and chronic U.K. weakness."
The company said volumes dropped in Britain and were flat in Canada as cash-strapped consumers pulled back on their spending. Worldwide, the volume of beer sold fell 2.7 percent.
Molson Coors Chief Executive Peter Swinburn said in a statement that the company's cost cuts and higher prices helped results in the most recent quarter. But he remained "cautious" about the rest of the year because of exchange rates, commodity price inflation and consumer demand for beer.
Foreign currency exchanges have been dragging on U.S. companies that do business overseas. Those companies are seeing their profits drop as the dollar has gained in strength relative to other currencies. A stronger U.S. dollar drags down profits as they are translated from local currencies into the dollar.
Molson Coors said in the first quarter, foreign currency movements hurt underlying pretax income by $9 million.
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AP Business Writer Vinnee Tong in New York contributed to this report.


Updated : 2021-05-07 00:16 GMT+08:00