MillerCoors meets volume expectations, though income declines

SABMiller and Molson Coors Brewing Company reported that MillerCoors' second quarter underlying net income declined 3.8% to $468.8m against the same period last year on Tuesday.

The US-based joint venture said the decline was driven primarily by the timing of shipments due to year-n-year calendar shifts, partially offset by lower cost of goods sold, higher net pricing and positive sales mix.

First half underlying net income, which the board said was not as significantly affected by the timing of shipments, increased 6.2%.

For the second consecutive quarter Coors Light and Miller Lite together delivered flat sales-to-retail volume in a declining segment, the board added, while overall MillerCoors sales-to-retail volume decreased 1.7% in the second quarter, driven primarily by the company's ‘below premium’ brands.

“For the first time in many years, we are in line with our volume expectations through the first half of the year," said MillerCoors chief executive Gavin Hattersley.

“The second quarter started slow, but we finished strongly in June, driven by our two American light lagers, Coors Light and Miller Lite.”

Hattersley said another indication of positive traction was finishing first in the 2016 Tamarron Supplier Survey, which polls hundreds of US distributors in rating the performance of beer, wine and spirit suppliers, for the first time in the history of the joint venture.

“Our entire system is energised by our performance and we are all looking forward to continuing our hard work to deliver a successful summer selling season.”