Improved performance in the UK, Romania, Hungary and the Czech Republic helped Molson Coors grow volumes in Europe by 1.5% in 2013.
The company said this was partially offset by continued overall weak demand in the region, particularly in Serbia and Bulgaria. Europe net sales per hectolitre decreased 1.9% on a local currency basis, with negative channel and package mix partially offset by positive pricing, the group stated.
Underlying pre-tax income in Europe increased 11.8% to $39.7m (£23.9m), driven by volume growth, positive pricing, lower supply chain costs and a c$2m (£1.2m) benefit from favourable foreign currency movements.
Global beer volumes increased 8.5% in the year to 59.7m hectolitres, with growth of 0.1% in Q4. Net sales dipped by 0.1% in Q4 but were up 7.4% across the 12 months to $4.2bn (£2.5bn).
Underlying net income at MillerCoors, its US joint venture, grew 30.2% in Q4 to $241.9m (£145.3m), driven by marketing and administrative cost reductions, domestic pricing and brand mix. However, the increase was offset partially by the impact of lower volumes and commodity and brewery inflation.
Molson Coors president and chief executive Peter Swinburn said: “In the fourth quarter, Molson Coors increased underlying pretax earnings 6.5%, expanded pretax margins and generated substantial underlying EBITDA and free cash flow. Underlying after-tax income declined less than one percent due to a higher tax rate in the quarter.
“For full year 2013, we grew underlying after-tax earnings and EBITDA and exceeded our targets for cost savings, cash generation and debt reduction.
“Regionally, our US business improved results, especially late in the year, Europe performed well in a difficult environment, Canada struggled, and International made significant progress toward its goal of profitability by 2016.
“Our overall brand performance was strong, and strategically we are gaining momentum in the areas that will have the most impact on our financial results as markets begin to improve.”
