MillerCoors’ income grew 9.3 percent despite decline in sales

Freeman Staff

Aug. 6, 2015

MILWAUKEE — During its second quarter MillerCoors had an underlying net income of $487.2 million, a 9.3 percent increase, compared to the same period last year. The company credits the income growth to lower brewing and packaging materials and fuel costs, as well as higher net pricing and supply chain cost savings. However, total net sales decreased 0.2 percent to $2.203 billion.

“Despite challenging trading conditions, we delivered another successful financial quarter,” said Gavin Hattersley, MillerCoors interim chief executive officer, in a statement. “Our Above Premium portfolio, led by the Blue Moon, Leinenkugel’s and Redd’s families, demonstrated strong growth as beer drinkers savor high-end beers. While Coors Light and Miller Lite grew share of segment, both brands declined on a volume basis and we are working hard to achieve both share and volume growth. In support of this effort, we plan to significantly increase our investments in the second half of this year behind our Premium Light and Above Premium brands.”

Domestic net revenue per barrel, excluding contract brewing and company-owned distributor sales, increased 1.7 percent and total cost of goods sold per barrel decreased 1.7 percent, according to the report. Domestic sales-to-retail volume decreased 3.2 percent and domestic sales-to-wholesalers volume decreased 1.6 percent.