Molson Coors Brewing (TAP 78.06, +2.36) is higher by 3.1% after beating fourth quarter expectations.
The brewery reported above-consensus fourth quarter earnings of $0.62 per share on a 4.5% year-over-year increase in revenue to $2.58 billion, which was just shy of estimates. Non-GAAP EBITDA grew 17.0% year-over-year to $480.30 million.
The increase in net sales was fueled by positive global pricing, royalty volume, and an indirect $50 million tax provision from a year ago.
Net sales per hectoliter grew 5.8% to $111.89. The increase was due to positive global pricing and higher royalty revenue.
Worldwide volume declined 1.1% to 22.4 hectoliters due to lower U.S. and international volumes, though the company saw growth in Europe and Canada, where volumes increased 10.4% and 0.8%, respectively. Global priority brand volume declined 1.9%. International volume fell 15.1% due to the transfer of royalty and export brand volume to Europe and a loss of the Modelo contract in Japan. The decline was partially offset by the addition of the Puerto Rico.
Sales in the United States declined 0.6% year-over-year to $1.72 billion. International sales grew 19.0% to $71.40 million while European sales jumped 29.0% to $473.20 million. Sales in Canada rose 7.1% to $352.90 million.
Looking to fiscal year 2018, the company expects that its underlying free cash flow will be within 10.0% of $1.50 billion.