Molson Coors Reports Double-Digit Third Quarter 2009 Income Growth
DENVER and MONTREAL, Nov. 4 /PRNewswire-FirstCall/ -- Molson Coors Brewing Company (NYSE: TAP; TSX) today reported double-digit income growth for the third quarter. Net income attributable to Molson Coors increased 37.4 percent to $235.3 million for the third quarter, up from $171.3 million a year ago. Underlying after-tax income(1) increased 22.7 percent to $212.9 million, or $1.14 per diluted share, up from $173.5 million, or $0.93 per diluted share, a year ago.


Peter Swinburn, Molson Coors president and chief executive officer, said, "Molson Coors had a successful third quarter, with underlying earnings up more than 22 percent versus a year ago. This headline profit includes some non-operating and one-time noise, both positive and negative. The positive resolution of tax positions in the quarter was partially offset by currency headwinds, a mark-to-market hedge loss this year, and the challenge of cycling supplier negotiation benefits last year. Excluding these factors, earnings grew approximately 13 percent in the quarter. These trading results reflect a high level of brand investment, coupled with cost control and price management. Our results also reflect weak industry volume trends, continued cost inflation across our businesses, and more promotional pricing activity in Canada. In terms of our portfolio performance, total-company volume in the third quarter declined, and worldwide Coors Light volumes were down slightly against a strong growth quarter a year ago."


"We remain focused on building a diverse portfolio of extraordinary brands, offering value-enhancing innovations for consumers, and achieving positive pricing to grow our top-line and bottom-line as the economy improves. We offer value to consumers in many forms, including innovative brands and promotional packaging, as well as category-leading advertising, retail promotions and service to our customers. In the fourth quarter, incremental investments related to these efforts will be most significant in our Canada, U.S. and international businesses. These investments are consistent with our brand-led global strategies, and we expect them to drive top-line and bottom-line growth as we move into 2010."


Third Quarter Highlights


Key operating and financial highlights for the Company's fiscal third quarter ended September 26, 2009, compared to the fiscal third quarter ended September 28, 2008, include the following:

-- Net income attributable to Molson Coors increased 37.4 percent to $235.3
million for the third quarter, up from $171.3 million a year ago, driven
by a lower effective tax rate, a one-time gain on the Company's
total-return swap, and lower net special charges, as well as strong cost
control and price management across the company.
-- Underlying after-tax income(1) increased 22.7 percent to $212.9 million,
or $1.14 per diluted share, up from $173.5 million, or $0.93 per diluted
share a year ago. This earnings performance was driven by a lower
effective tax rate and strong earnings growth from MillerCoors and our
U.K. business, which were partially offset by cost inflation, lower
worldwide volume, and unfavorable currency movements.
-- Third quarter 2009 results include the impact of unfavorable foreign
currency movements, which decreased total underlying pretax income
approximately $13 million versus a year ago.

-- Molson Coors worldwide beer volume decreased 2.9 percent, driven by
challenging markets, a weak global economy, and the Company's continued
strategy in the U.K. to emphasize revenue growth over low-margin volume
growth.




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