Brewer Molson Coors (TAP -0.45%) served up skunked beer today to investors, posting first-quarter revenues and profits that fell short of analyst expectations on the top and bottom lines.
Although beer volumes jumped 20.3% and net sales were up 19.8% as a result of acquisitions, revenues of $828.5 million came in well below the Capital IQ analyst consensus view of $857.7 million. Adjusted profits of $0.30 per share also missed what Wall Street was expecting while coming in well below the $0.47-per-share showing it posted last year.
The first quarter is seasonally slow for Molson Coors, and with the addition of the company's Central Europe operations, which brought with it heavy debt-service costs, underlying earnings and net income were impaired. The brewer acquired StarBev last June for 2.65 billion euros, when it was anticipated to enhance its growth profile.
Molson Coors President and Chief Executive Officer Peter Swinburn said: "In the balance of 2013, our focus will continue to be on the three pillars of our growth strategy, and particularly the first one, which is to grow profitably in our core businesses through brands and innovation. We also intend to pay down debt. In combination with disciplined cash use, our growth strategy is designed to drive long-term profit, cash flow, and total return for our shareholders."
Molson Coors is one of the world's largest brewers, with signature brands including Coors Light, Molson Canadian, Staropramen, and Carling. Shares of the brewer fell almost 3% in midday trading before closing with a 0.49% drop.
