Molson Coors profit jumps after brewery sale

MONTREAL— Molson Coors Brewing Co. beat expectations as its net profit almost doubled to $158.8 million (U.S.) in the first quarter, helped by proceeds from the sale of its Vancouver brewery.

The company, based in Denver, Colo. and Montreal, earned 78 cents per diluted share for the three months ended March 31. That compared to 43 cents per share of $81.1 million a year earlier.

Molson Coors saw its underlying net income grow 28 per cent to $110.3 million, or 54 cents per share, after excluding one-time items, up from $86.1 million, or 46 cents per share, a year earlier.

Net sales were $657.2 million, down about 6 per cent from the first quarter of 2015, but up 0.1 per cent in constant currency.

Global beer volume increased 1.2 per cent to 11.6 million hectolitres while Coors Light volume was up 3.5 per cent.

Sales in Canada fell to $268 million from $313.5 million due to termination of an agreement to sell Miller brands, increased competition and weak economic conditions in Western Canada and a $27.8-million negative impact from a weaker dollar.

The company was expected to earn 43 cents per share in adjusted profits on $625.9 million of sales, according to analysts polled by Thomson Reuters.

Results were helped by volume growth and lower costs, along with a $110.4-million gain from the sale of the B.C. brewery.

In Canada, its adjusted pre-tax income excluding the Vancouver brewery sale increased 20.7 per cent to $37.3 million, mainly due to a temporary reduction in distribution costs and cost savings.