Molson Coors’ UK business failed to show sales volume growth in the fourth quarter of FY14 as the European business saw pre-tax profits down 14.7%.
At MillerCoors – the US joint venture between SAB Miller and Molson Coors – chief executive Tom Long stepped down as the company reported total net sales down 1.1% in the last quarter but up 0.6% for the year.
In the last quarter Molson Coors reported net sales down 5.3% on a reported basis but up 0.9% in constant currency and beer volumes down 0.3%. Underlying EBITDA was $273.9m - down 14.6%. Across the year, Molson Coors had net sales of $4.15bn, down 1.4% on a reported basis, but up 0.3% in constant currency and beer volumes down 1.3%.
In Europe underlying pretax income decreased 14.7% to $38.3m in the latest quarter and 10% on a constant currency basis.
The company said: “Positive volume and pricing drove strong net sales and gross margin growth in the quarter, but pretax income declined due to increased marketing and sales investments and approximately $2m of negative impact from foreign currency movements.
“Molson Coors Europe sales volume increased 1.8% driven by growth in eight of 11 countries, with the exceptions of Serbia, Ireland and the United Kingdom. On a comparable-trading-day basis, UK volume increased in the quarter. “
Europe net sales per hectolitre increased 0.5% in the quarter.
At MillerCoors, net income grew 2.9% to $1.328bn for the year and decreased 11.8% to $213.3m for the fourth quarter.
Of his decision to retire, Long said: “It has truly been the honour of my career to run MillerCoors. I have woken up every day excited to lead the company forward. I am leaving a company and a team, both of which are stronger than they have ever been. MillerCoors is in position to capitalize on the changing forces within the U.S. beer industry more decisively than ever and my team has the passion, conviction, creativity and business plan to win in the long term in this industry.”
