MillerCoors today reported its third quarter profit increased nearly 17 percent over last year, driven in part by its controversial closure of a North Carolina brewery.
Denver-based Molson Coors Brewing Co., now the sole owner of MillerCoors, reported third quarter net income was $202.5 million, or 94 cents per share, in the third quarter, up from $16.6 million, or 7 cents per share, in the third quarter of 2015.
The company attributed the increase to $275 million in impairment charges it incurred for some of its European brands last year. On the other hand, Molson Coors had additional special charges and non-core expenses in the current year as a result of the recently completed MillerCoors transaction.
The Chicago-based MillerCoors division reported third quarter net income of $369.2 million, up 16.7 percent from $316.5 million in the third quarter of 2015, due to lower special charges related to the closure of a brewery in Eden, North Carolina, as well as higher net pricing, positive sales mix and lower cost of goods sold.
MillerCoors has more than 1,200 employees and brews about 10 million barrels of its beer annually in Milwaukee’s Miller Valley. It also brews Leinenkugel’s and specialty beer at its 10th Street Brewery in Milwaukee.
“This is a historic time in the evolution of Molson Coors,” said Mark Hunter, president and chief executive officer. “Three weeks ago, we completed our acquisition of the remaining 58 percent stake in the MillerCoors joint venture, along with the Miller global brand portfolio. We emerge as the world’s third-largest brewer, bringing together Molson Coors and MillerCoors into a bigger, better organization. As one company with an expanded portfolio of iconic brands, we intend to leverage our increased scale, resources, synergies and combined commercial experience to accelerate our First Choice agenda and deliver long-term shareholder value.”
Molson Coors reported $947.6 million in third quarter revenue, down from $1 billion in the same period a year ago.
