First Quarter 2017 Highlights (versus First Quarter 2016 Pro Forma Results)(1)(2)
- Worldwide brand volume: 19.706 million hectoliters, increased 2.1%
- Global priority brand(3) volume increased 6.6%
- Net sales: $2.4 billion, decreased 0.5%, and increased 1.0% in constant currency
- Net sales per HL: $111.93, increased 2.4%, and increased 3.9% in constant currency
- U.S. GAAP net income from continuing operations attributable to MCBC: $201.9 million ($0.93 per diluted share), compared to pro forma net income of $257.4 million a year ago
- Underlying after-tax income: $165.6 million ($0.76 per diluted share), decreased 12.1%
- Underlying EBITDA (earnings before interest, taxes, depreciation and amortization): $514.9 million, decreased 3.6%, and was unchanged in constant currency
- Cash tax benefits resulting from the MillerCoors acquisition were $97.0 million for the first quarter, and transaction-related amortization was $11.2 million, net of tax. For the full year 2017, we now expect transaction-related cash tax benefits of nearly $390 million and transaction-related amortization of approximately $45 million, net of tax.
DENVER, Colo., and MONTREAL, Quebec – May 3, 2017 – Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported U.S. GAAP net income from continuing operations attributable to MCBC of $201.9 million for the first quarter, down from pro forma net income of $257.4 million a year ago. This decrease was driven by lower net special and other non-core items this year, along with lower U.S. volume, mix shift to higher-cost products, higher brand amortization expense and higher corporate costs. The Company also reported a 12.1 percent decrease in underlying after-tax income for the first quarter of 2017, driven by lower income in the U.S. and Canada, as well as higher brand amortization expense and corporate costs.
Molson Coors president and chief executive officer Mark Hunter said, "With the completion of the MillerCoors transaction late last year and the changes we are making to align and enhance our organization, 2017 will be a transition year as we build a larger, stronger First Choice-focused company. Consistent with this, our results today reflect increased investments in the building blocks that will drive top-line growth, cost savings, profit growth, cash generation, debt pay-down, and total shareholder returns in the years ahead."
Mark added, "First quarter underlying earnings were lower than last year, primarily due to higher brand amortization expense and weaker January and February volumes in the U.S. this year-- and because we were cycling strong earnings comparatives from last year. First quarter underlying after-tax income in 2016 increased more than 35 percent compared to 2015 on a pro forma basis, partially due to the benefit of inventory dynamics and the timing of the Easter holiday. We have also made incremental investments this year to strengthen our global business and capabilities. Despite the softer start to this year, volume trends have improved since January and February, we are making great progress with our First Choice agenda in each of our businesses, and we are confident of delivering our full-year business plans."