Molson Coors Brewing (NYSE: TAP) reported Q2 EPS of $1.41, $0.09 better than the analyst estimate of $1.32. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $1.01 billion.

Molson Coors president and chief executive officer Mark Hunter said, “In the 2nd quarter, our underlying pretax earnings on a constant-currency basis increased 5.9 percent, driven by positive net pricing, along with results of cost savings initiatives. Due to a higher tax rate and unfavorable foreign currency, our underlying after-tax income decreased 9.9 percent. We increased gross margins in the U.S., Canada and Europe and grew net sales revenue (NSR) per hectoliter in the U.S. and Canada in local currency. Overall Europe NSR per hectoliter declined in local currency, but if we exclude the impact of the terminated Modelo and Heineken contracts, NSR per hectoliter increased in all of our major Europe markets apart from Serbia. We also expanded global underlying operating margins, driven by our U.S. and Canada businesses. In the quarter, we continued to implement our strategy of driving brand-led profit growth, meaningful cash generation and disciplined cash and capital allocation. We have invested consistently behind our core brands, with Coors Light in the USA growing share of segment; we made progress in transforming our portfolio toward above-premium, craft and cider; we expanded the depth and reach of our international brands in fast-growing markets; and we increased our commercial capability. Additionally this year, we have repatriated Staropramen lager to our U.K. portfolio, and purchased the Mount Shivalik Breweries business in India and the Rekorderlig cider brand distribution rights in the U.K. and Ireland. These acquisitions give us high-potential platforms to grow our business in key markets. We also made the decision to substantially restructure our China business as we focus on accelerating the performance of our overall International business, and we have closed our Alton brewery in the U.K. as we continue to restructure our U.K. supply chain."

Mark continued, "Additionally, we remained resolute on utilizing PACC as our key business-decision framework, using our cash to reward investors and ensure a healthy balance sheet, reducing costs to provide front-end firepower, and placing smart bets that deliver brand-led growth opportunities. Our strategy is underpinned by highly engaged, passionate and inspired people with the ambition to be First Choice in the eyes of our consumers and customers. This progress in the quarter was against the backdrop of continued volume pressure in our largest markets, significant impact from foreign currency movements, a higher tax rate, and terminations of business contracts in the U.K. and Canada, as previously communicated."

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