Molson Coors Q4 Profit Surges To $2.22bn

Molson Coors Brewing Company has reported net income of $2.22bn or $1.19 per diluted share for the fourth quarter ended December 26, 2009, an increase of 137% compared to $93.7m or $0.51 per diluted share for the same quarter previous year.

Underlying after-tax income increased 85.5% in the fourth quarter to $190.3m, or $1.02 per diluted share, up from $102.6m, or $0.55 per diluted share, in the year ago quarter.

Full-year net income increased 90.2% to $720.4m, while 2009 underlying after-tax income increased 40.7% to $707.4m, or $3.81 per diluted share.

For the quarter, Molson Coors said that worldwide beer volume decreased 4% to 12.1 million hectoliters, driven by challenging markets, a weak global economy, and its continued strategy in the UK to forgo low-margin volume. For the year, worldwide beer volume decreased 3% on a pro forma basis.

For the full year 2009, Molson Coors achieved $92 million of cost savings as part of its now-completed Resources for Growth (RFG) cost savings program. Over the past three years, the company said that it has delivered $270m in cost savings through the RFG program, which significantly exceeded its commitment of $250m. In the fourth quarter alone, the company delivered $24 million of RFG cost reductions.

Peter Swinburn, president and chief executive officer of Molson Coors, said: “Underlying earnings for our company increased more than 85% in the 4th quarter versus a year ago, driven by a one-time reduction in tax rate. Behind the headline number, our results were affected by weak volumes across all markets, cost inflation in the US and UK and brand investments in Canada.

“Looking to 2010, we expect volume to remain challenging, especially in the first half, but we are focused on continuing to establish a strong brand base to our business that ensures we not only manage the current market but that we take full advantage of revenue upsides when momentum improves.”