Molson Coors Brewing reports third-quarter loss of $34.4M on impairment charge; shares rise

Molson Coors saw beer volume decline globally and the brewer posted a third-quarter loss of $34.4 million after writing down the value of two of its European brands.

Europe has become a trouble spot for many multinationals with zero economic growth in the European Union during the second quarter. Europeans are switching to less-expensive beers in the stagnant economy and Molson Coors took a $360 million impairment charge on its Jelen and Ozujsko brands.

Continue Reading Below

"The largest markets for these brands are Serbia, Bosnia and Croatia, where two primary factors drove the impairments: weak consumer demand, which we expect to be exacerbated by the long-term impact of the severe flooding in May, and the growth of the low-price value segment," said CEO Peter Swinburn.

However, demand hasn't been strong in North America, either.

The company lost 19 cents per share, but if one-time charges and gains are excluded, Molson Coors said it turned a profit of $1.46 per share, just shy of Wall Street expectations.

The Denver company posted revenue of $1.17 billion, about the same as a year ago, despite a 3.4-percent decrease in worldwide beer sales volume.

Shares of Molson Coors Brewing Co. rose 3 percent, or $2.32, to $76.48 in afternoon trading.


Elements of this story were generated by Automated Insights using data from Zacks Investment Research. TAP stock research report from Zacks.


Keywords:Molson Coors Brewing,Earnings Report