Molson Coors Brewing Co., maker of Blue Moon beer, reported second-quarter profit that topped analysts’ estimates after it cut costs and raised beer prices.
Net income more than doubled to $187.3 million, or $1.01 a share, from $79.4 million, or 42 cents a year ago, the company said today in a statement. Excluding some items, profit was $1.11 a share, exceeding the 96-cent average of analysts’ estimates compiled by Bloomberg , Bloomberg reports.
Molson, the Denver-based maker of Coors Light, said worldwide, the volume of beer sold in the three-month period ending in June fell 3.2 percent, with declines in key markets like Britain, where the company has top seller Carling. Volume in Britain fell 12.4 percent in the quarter, outpacing the total British beer industry decline of 5 percent. Pricing remained in place, though, and the company said its strategy in Britain continues to be one of emphasizing revenue growth over short-term volume growth , The Associated Press reports.
"Expectations were low for this quarter. There was concern about price competition in Canada," said Ghriskey, whose firm does not own Molson Coors shares but follows the sector. "In this competitive environment, to raise prices certainly shows strong underlying demand." , Reuters reports.