Molson Coors Brewing (TAP) Reports In-Line Q3 EPS, Miss on Revenues; Offers FY17 Business Outlook

Molson Coors Brewing (NYSE: TAP) reported Q3 EPS of $1.34, in-line with the analyst estimate of $1.34. Revenue for the quarter came in at $2.88 billion versus the consensus estimate of $2.97 billion.

• On Track to Deliver Full-Year Business Plans and Exceed Cost Savings Target
• Worldwide Brand Volume Increased 0.6% to 25.5 million HL; Priority Brand Volume Grew 2.4%
• Net Sales Revenue (NSR)/HL Increased 2.9%, and 1.9% in Constant Currency
• EPS of $1.29 Decreased 12.2%, and Underlying EPS (Non-GAAP) of $1.34 Decreased 3.6%
• Year-To-Date (YTD) Worldwide Brand Volume Increased 1.6% to 71.6 million HL; Priority Brand Volume Grew 4.4%
• YTD NSR/HL Increased 1.6%, and 2.4% in Constant Currency
• YTD EPS of $3.71 Decreased 9.5%, and Underlying EPS (Non-GAAP) of $3.76 Decreased 2.8%
• YTD Operating Cash Flow Increased 82%, Underlying Free Cash Flow Increased 78%

2017 Outlook

The following targets for full year 2017 are unchanged from previous disclosures, unless otherwise indicated:

• Underlying free cash flow: $1.2 billion, plus or minus 10 percent.
• Cash pension contributions of approximately $310 million as a result of an additional, discretionary contribution of $200 million to the U.S. pension plan. - Updated (formerly in the range of $300 to $320 million)
  • Included in 2017 underlying free cash flow target.
• Transaction-related cash tax benefits: more than $400 million.
• Capital spending: approximately $650 million, plus or minus 5 percent. - Updated (formerly $750 million, plus or minus 10 percent)
• Cost savings: more than $175 million.
• Cost of goods sold per hectoliter:
  • MillerCoors: low-single-digit increase.
  • Canada: mid-single-digit increase (local currency).
  • Europe: low-single-digit increase (local currency).
  • International business: increase at a low-single-digit rate. - Updated (formerly decrease at a mid-single-digit rate)
• Underlying Corporate MG&A expense: approximately $170 million, plus or minus 10 percent.
• Underlying depreciation and amortization: approximately $790 million.
• Pension income: approximately $27 million. - Updated (formerly $24 million)
• Underlying Corporate net interest expense: approximately $360 million, plus or minus 5 percent. - Updated (formerly consolidated net interest of $370 million, plus or minus 10 percent)
• Underlying effective tax rate in the range of 26 to 28 percent. - Updated (formerly 24 to 28 percent)

For earnings history and earnings-related data on Molson Coors Brewing (TAP) click here.

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