DOW JONES NEWSWIRES
MillerCoors reported a 51% jump in first-quarter earnings on a
pro-forma basis, with the Miller Genuine Draft brand reporting its
first volume growth in a decade.
The laggard for the joint venture - created mid-2008 to combine
the U.S. operations of Molson Coors Brewing Co. (TAP) and SABMiller
PLC (SAB.JO) - continued to be Miller Lite, with sales to retailers
falling by the mid-single digits on a percentage basis. But the
decline was smaller than the fourth quarter.
Meanwhile, MillerCoors continues to achieve cost savings faster
than planned - $50.1 million in the quarter alone. That matches the
$50 million planned for the first year of the venture, which began
July 1. As it said in February, MillerCoors plans $128 million in
savings by June 30; the total was $78.4 million as of March 31.
Assuming the venture was in place a year ago, MillerCoors'
profit rose to $206 million from $136.6 million a year earlier. Net
sales increased 3.8% to $1.72 billion amid price hikes, helping
push gross margin up to 38.8% from 38.5%.
Domestic sales to retailers rose 0.4%, with growth at five of
the company's six priority brands nearly offset by weakness at
Milwaukee's Best. Domestic sales to wholesalers dropped 1%. To help
Miller Lite, a new marketing campaign was launched in late
March.
Molson Coors will release its first-quarter results later
Tuesday morning.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com