MillerCoors Profit Grows Despite Flat Sales
CHICAGO – MillerCoors LLC, the combined U.S. entity of Molson Coors and SABMiller, reported a 28.3-percent jump in profits in the second quarter 2010, to $391.2 million, the Business Journal of Milwaukee reported.
Net income excluding special items increased 19.8 percent to $389.7 million, thanks to innovation, solid price gains, cost savings resulting from the merger of Miller Brewing and Coors Brewing, and lower marketing, general and administrative expenses, according to the report.
MillerCoors domestic sales-to-retailers declined 2.4 percent, but was improved from the first quarter, which was down 4 percent, the report stated. This figure was helped by MillerCoors premium light, craft and import brands.
Premium light brand volumes for the joint venture were down in the low single digits. Coors Light volumes were flat, while MGD 64 and Miller Lite were down by low single digits. The crafts and imports business were led by a strong performance of Blue Moon and Leinenkugel's brands, and the segment generated double-digit growth, the company stated. Below premium brands saw a low single-digit volume decline, the newspaper reported.
"Now that we're into the home stretch of the summer selling season, our results show some positive signs of progress," Leo Kiely, chief executive officer, MillerCoors, said in the report. "We grew profit by double digits in an unfavorable selling environment. A few of our key brands showed significant trend improvements from the last quarter, and the craft and import portfolio posted very strong results, driven by our investments in brand innovation."
The brewer of Miller Lite and Coors Light saw total net revenue dip 0.1 percent to $2.13 billion.