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Molson Coors Brewing Company and SABMiller plc (ADR)(OTCMKTS:SBMRY) announced financial results if MillerCoors for the recently concluded 3Q2015. As per the reports, revenue per barrel increased while underlying net income decreased as compared to the previous quarter.
The underlying net income of MillerCoors reduced 8.6% to $344.4 million on YOY basis. Some of the major reasons for the decline in the net income were higher marketing expenses, lower volume, etc. These were partially offset by positive sales mix, lower cost of sales and growth in net pricing. Miller Light and Coors Light are considered two major products in the premium lighting space. The third quarter marked their second consecutive excellent performance in the market, and collectively the best performance in the last three years.
The senior management of MillerCoors is delighted to share this update and hopes that the company will continue to outperform the market in the coming months. According to Gavin Hattersley, Chief Executive Officer, MillerCoors, it’s been great to witness the overall portfolio growth in the third quarter. As of now, the prime objective of MillerCoors is to grow its American Light Lagers.
MillerCoors has a huge task in hand and is committed to finishing the job of gaining a leading market position in premium lighting segment as soon as possible.
The underlying net income came down to $344.4 million. In terms of net sales, MillerCoors reported adverse growth of 3.4% as it reduced to $2.000 billion. Company’s domestic revenue per barrel, keeping aside company-owned distributor sales and contract brewing, rose 1.2 percent. Domestic sales to retail or STR volume came down by 2.5% and COGS per barrel reduced by 0.8 percent. Domestic STWs or sales-to-wholesalers volume reduced by 4.6 percent in 3Q215.
Although, the financial performance wasn’t up to the management’s expectations, it’s confident that it will return to normal by the end of 2015.