Molson Coors today announced second quarter results that showed growth in constant currency net sales, global brand volume, underlying EBITDA, net income, earnings per share and free cash flow. Consolidated and U.S. segment comparisons are against second quarter 2016 pro forma results unless otherwise noted (see the earnings release for additional information, including definitions and reconciliations of non-GAAP measures).
In the U.S., MillerCoors sales-to-retailers volume declined by 1.9 percent, driven by lower Premium Light and Economy volume, partially offset by growth in Above Premium. Domestic sales-to-wholesalers volume decreased by 0.4 percent.
Domestic net revenue per hectoliter (which excludes contract brewing and company-owned-distributor sales) increased by 1.0 percent, due to higher net pricing and positive sales mix and partially offset by cycling a multi-year adjustment in federal excise tax expense last year. (Cycling this adjustment in federal excise tax reduced our NSR per hectorlitre by 40 basis points this quarter.)
Here are some highlights from the earnings call:
- Total Premium Light volume was down low-single digits. Coors Light achieved its ninth consecutive quarter of increased segment share, and Miller Lite reached 11 consecutive quarters of increased segment share.
- Coors Banquet grew volume at a mid-single-digit rate and increased segment share.
- The Above Premium portfolio returned to growth, up low-single digits driven by regional and national craft brands. Blue Moon Belgian White, Leinenkugel’s, and Peroni posted strong growth, while Redd’s and Henry’s posted lower volume. The limited return of Zima has been a success.
- Economy brands were down low-single digits for the second consecutive quarter, a significant trend improvement from the past several years.