MillerCoors buy drags on Molson Coors profits - results

Half-year net profits lift 6.8% to US$331m
Net sales in six months to end of June down 3.7% to $1.64bn
H1 operating profits up 16% to $511m
Q2 net profits slide 24.8% to $172.3m
Net sales in three months to end of June fall 2% to $986.2m
Operating profits in Q2 dip 14.8% to $267.8m

Molson Coors has reported a dip in second-quarter net profits, blaming charges in connection with its MillerCoors acquisition as well as prohibition in parts of India and planned brewery closures.

Net profits fell 24.8% to $172.3m in the three months to the end of June. The company also said it experienced "significantly higher" sales and marketing expenses in the period. However, net profits in the first-half of the year were up 6.8% to US$331m.

The brewer also reported ForEx headwinds in the quarter. Negative currency impacts were $2.2m in Europe, $1.9m in Canada, $1.2m in Corporate and $300,000 in International.

"Progress in the quarter included net sales revenue per hectolitre growth on a constant currency basis in all of our businesses, strong Coors Light growth globally, improved core brand momentum, fast-growing innovations in key markets, and strong above-premium growth globally," said CEO Mark Hunter. "We significantly increased investments behind our brands, although the timing of shipments and other short-term factors held back bottom-line performance in the quarter."

Hunter said Coors Light grew global volumes by around 4%, driven by Europe, Latin America and the US.

The CEO also took the opportunity to update on the acquisition of MillerCoors.

"In the past few months, we have also made substantial progress on the pending MillerCoors transaction, including integration planning and completing the necessary financing at very attractive rates," he said. "Investor demand for our recent debt offering was very strong, and we achieved record and near-record low interest rates on our debt issue."

Molson Coors expects to close the deal before the end of 2016. The transaction remains subject to Anheuser-Busch InBev's acquisition of SABMiller, which is scheduled to complete on 10 October.

Molson Coors' share price was flat as of 9:49 EDT.

To read the company's official release, click here: http://www.molsoncoors.com/~/media/molson%20us/en/pdfs/financial/tap%20q...

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