MillerCoors shows first-quarter growth in total sales
Its domestic sales to retailers fell 1.3% while its domestic sales to wholesalers increased 1.3%, Tuesday’s statement said.
This was the first time in the history of the joint-venture the brands delivered "flat sales to retail volume", SABMiller said.
SABMiller announced in November it will sell its 58% of MillerCoors to partner Molson Coors for $12bn to pave the way for US competition authority approval for its takeover by Anheuser-Busch InBev.
Total cost of goods sold per barrel fell 5%, which MillerCoors said was driven by lower aluminium and fuel pricing, along with supply chain cost savings. These factors were partially offset by brewery inflation.
Marketing, general and administrative costs increased by 5.3%, driven primarily by higher employee-related expenses and information technology investments.
MillerCoors achieved $18m of cost savings in the first quarter, primarily related to brewery efficiencies and procurement savings.
Depreciation and amortisation expenses for MillerCoors were $117.1m in the quarter. These results include accelerated depreciation related to the planned closure of the Eden, North Carolina, brewery of $35.9m in the quarter that are included in special items.
Special items of $36.9m for the quarter were related to the previously announced closure of the Eden Brewery, with additional special items planned through the third quarter of 2016, when the closure is expected to be completed.
"Last fall, we laid out an aggressive three-year strategy to get to total volume growth by 2019," MillerCoors CEO Gavin Hattersley said in the statement.
"While we have a great deal of work to achieve that ambition, this quarter we took positive strides with the sales improvement of both Coors Light and Miller Lite, a strong launch of Henry’s Hard Sodas and strengthening volume in our above premium portfolio."