FDBusiness.com

Molson Coors has reported a 1.3% decline in its worldwide beer volume to 59.0 million hectolitres in 2014 as weak consumer demand continued across its largest markets, although the Coors Light brand grew volume by nearly 2% globally. Group net sales fell by 1.4% to $4.15 billion on a reported basis, but rose by 0.3% in constant currency. Similarly, net sales per HL at $136.19 decreased by 1.2%, but advanced by 0.6% in constant currency. Underlying EBITDA increased by 0.1% to $1.47 billion and underlying after-tax income increased by 5.7% to $768.5 million.

The international brewing group delivered more than $70 million of cost savings in 2014, excluding its MillerCoors joint venture with SABMiller, which achieved an additional $143 million of cost savings. Molson Coors benefits from 42% of MillerCoors’ cost savings, equal to $60 million in 2014.

Mark Hunter, president and chief executive of Molson Coors, comments: “Overall, 2014 was a good year for Molson Coors. We grew net sales in constant currency, as well as underlying EBITDA, free cash flow, after-tax income and earnings per share. Weak consumer demand continued across our largest markets, but we made good progress in building a stronger brand portfolio, delivering value-added innovation, strengthening our core brand positions, and increasing our share in above premium. We also continued to improve our sales execution and revenue management capabilities, increase the efficiency of our operations, implement common systems and focus on Profit After Capital Charge as the key driver for our cash and capital allocation strategy.”

He adds: “We over-delivered against our cost savings targets, and we reduced our net debt by nearly $800 million. We grew our global above-premium volume, net pricing and sales mix, and maintained market share in Europe despite a poor economy and floods in some of our highest-share markets.”