MONTREAL — Molson Coors Brewing is reporting a 24.1 per cent decline in profit from its continuing operations for this year's second quarter.
Under U.S. accounting rules, the beer company's net income in American currency dropped to US$174.1 million or 81 cents per share.
That's down from $229.3 million or $1.23 per share in last year's second quarter.
Molson Canadian beer on display at a newly opened self serve Beer store in Kingston, Ont. on March 16, 2016. (Photo: Lars Hagberg/CP)
The American-Canadian multinational says a major factor was special items related to its pending acquisition of the remaining 58 per cent of MillerCoors from Anheuser-Busch InBev.
There were also operational and market issues in other parts of its far-flung business, including declines in profits from its Canadian operations, an alcohol prohibition in the Indian state of Bihar, and restructurings in Europe and China.
Worldwide beer volume decreased 0.8 per cent and net sales fell 1.9 per cent to US$986.2 million, including the impact of currency fluctuations. On a constant-currency basis, sales would have been up 1.9 per cent.
Sales from Canada were down US$1.9 million before currency adjustments, European sales were down US$2.2 million.
A neon Molson logo. (Photo: CP)
After adjustments, Molson Coors says it had $239.5 million of underlying after-tax income or $1.11 per share — down from $263.8 million or $1.41 per share.
On Monday, Molson Coors announced several leadership appointments at MillerCoors and its Canadian subsidiary once the transaction is completed.
Among the appointments announced Monday, there will be a new president and CEO at Molson Coors Canada, as Stewart Glendinning takes on those roles at Molson Coors International.
Empty cardboard cases make their way down a conveyer where they will be packaged with beer. (Photo: Randy Risling/Toronto Star via Getty Images)
The current president and CEO of Molson Coors International — Kandy Anand — will be responsible for MillerCoors' global growth.
The new president and CEO of Molson Coors Canada will be Frederic Landtmeters, the current managing director of Molson Coors UK and Ireland.
The company said Landtmeters "will be responsible for continuing the transformation of that business in order to reignite growth.''
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