MillerCoors profits drop 14 percent
Brewers usually blame it on the economy or the weather if figures don't live up to expectations. Same with MillerCoors. The number two brewer in the U.S. reported on 2 November 2011 that low consumer spending and rising commodity prices contributed to weaker earnings in the third quarter.
MillerCoors said third quarter net income, excluding one-time items, dropped 14 percent to USD 286.9 million from USD 333.9 million in the same quarter a year ago. Total net sales decreased 2.5 percent to USD 1.97 billion, while volumes declined 4.2 percent to 17.17 million barrels from 17.91 million barrels.
"Despite the toughest headwinds we've seen as a company, [...] we continued to deliver our cost savings commitments," said MillerCoors Chief Executive Officer Tom Long.
For the quarter, MillerCoors domestic sales-to-retailers were down 2 percent, a slight improvement from the second quarter. Domestic sales-to-wholesalers were down 4.7 percent. The wholesale decline was higher than the retail decline due to the timing of shipments year over year, MillerCoors said in a press release.
The Coors Light brand grew low-single digits, whereas Miller Lite declined mid-single digits and MGD 64 declined double digits.
The brewer's craft and import portfolio, Tenth and Blake Beer Company, grew by 17.2 percent in the quarter, thanks to double digit increases in Blue Moon and Leinenkugel's. The company said Peroni Nastro Azzurro delivered good growth in the mid-single digits.
