Molson Coors Q2 Profit Drops 24%, but Still Beats Estimates

beerBeer producer Molson Coors Brewing Company (NYSE:TAP) on Tuesday posted solid second quarter earnings results, as profit and revenue both came in above expectations.

The Denver-based company reported second quarter adjusted net income of $1.11 per share, beating analysts’ view of $1.09. Sales fell 1.9% from last year to $986.2 million, but still bested estimates for $958.67 million.

As we’re seeing with many U.S.-based companies, the stronger dollar is hurting international sales. Molson Coors noted that Q2 net sales per hectoliter fell 1.4% to $114.96, but rose 2.4% on a constant currency basis. The U.S. dollar has posted big gains this year against many foreign currencies, including the Euro, pound, Canadian dollar, and Japanese yen.

Other interesting notes from the report included:

  • U.S. segment sales fell 6.6% on lower volume and special charges.
  • Canadian sales to retailers fell 0.1% on 0.8% lower volume.
  • Europe sales volume rose 1.6%, helped by acquisitions
  • Total international sales volume plunged 9.3%, hurt by issues in India, an accounting change, and China restructuring.

Molson Coors shares fell $0.38 (-0.38%) to $101.40 in Tuesday morning trading. TAP has gained nearly 8% this year, slightly outpacing the S&P 500′s 6.4% rise in the same period.

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