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Food & drink

Molson Coors swings to Q3 profit

The world's largest beer company was helped by solid demand for its higher-margin brands

Molson Coors Brewing (NYSE:TAP), the world's largest beer company, posted better-than-expected third-quarter profit, buoyed by solid demand for its higher-margin brands.

Net income was $16.6mln, or $0.09 per share, in the September quarter, compared to a net loss of $34.4mln, or $0.19 per share, a year earlier, the Denver, Colorado-based company said in a statement.

Removing items, the company earned $1.40 per share.

Third-quarter sales fell 13% to $1.02bn, as a strong dollar lowered the value of its sales. Sales have risen only once in the last nine quarters.

Analysts on average had expected earnings of $1.28 per share and revenue of $1.01bn, according to Capital IQ.

Molson Coors gets all its revenue from outside the United States and receives 42% of profits of MillerCoors LLC, its U.S. joint venture with SABMiller Plc.

MillerCoors reported a 3.4% drop in net sales, weakened by lower demand for its Coors Light beer.

Molson Coors said on Thursday it is focusing on selling more craft-style brews, a fast-growing market, and higher-priced beers.

Consumers in Europe and the United States are increasingly preferring craft brews made by independent players, pushing major beer makers to buy or invest in craft brews.

Shares closed down 0.1% at $87.36 on Wednesday. The stock is up 17% this year.

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