Molson Coors Brewing Company (NYSE:TAP, CVE:TPX) exceeded Wall Street’s estimates for third-quarter revenue and profit thanks to a surge in demand for its beer across Latin America and Europe.
For the three months ended on September 30, the brewer reported net income of $338.3 million or $1.84 per share, up from $287 million, or $1.37 per share in the year-ago quarter. Its revenue, meanwhile, came in at $2.93 billion
The quarterly results zipped past the expectations of analysts who had predicted Molson would earn $1.59 on revenue of $2.92 billion.
In a statement, CEO Mark Hunter pointed out that Molson is selling far more beer outside North America, which is offsetting sluggish growth in the US and a dip in sales in Canada.
“Europe, our second-largest business unit by volume, is growing consistently and accelerating the pace of portfolio premiumization while our International business unit, led by the Latin American markets posted mid-teens growth due to the strong performance of our global brands, led by Coors Light and the Miller Trademark brands of MGD, Miller Lite and Miller High Life,” Hunter said.
"In the U.S., brand volumes ... were below industry volumes. As we have indicated, improving our volume performance in the U.S. is a priority," Hunter added.
Net sales in Europe jumped 3% from the year-ago quarter to $577.9 million while sales were up 2.3% in the US at $1.935 billion. International sales, which include Latin America, jumped 2% to $67 million while Canadian sales slipped 4.3% to $388.9 million.
With offices in Denver, Colorado and Montreal, Canada, Molson’s array of beers include Coors Light, Miller Light, Carling, Staropramen, Blue Moon Belgian White, Sharp’s Doom Bar and Hop Valley.
Investors sent Molson Class B shares up 4.5% to $60.86 in Wednesday’s pre-market trading session.
Contact Ellen Kelleher at ellen@proactiveinvestors.coom