DENVER — 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.
“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.
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.
THE ASSOCIATED PRESS