Exhibit 99.2
MOLSON COORS ANNOUNCES RESULTS FOR MOLSON'S 3RD QUARTER OF FISCAL 2005
MONTREAL, Feb. 9 /PRNewswire-FirstCall/ -- Molson Coors Brewing Company
(NYSE: TAP; TSX) today announced Molson Inc. fiscal 2005 third quarter results
for the three-month period ended December 31, 2004. All financial results are
unaudited, denominated in Canadian dollars, and presented in accordance with
Canadian generally accepted accounting principles (Canadian GAAP). Unaudited
financial statements and Management's Discussion & Analysis are available on the
Internet at www.molson.com.
Molson Inc. Fiscal 2005 Third Quarter Highlights
. Consolidated operating profit (EBIT) of $62.7 million compared to
operating profit of $115.3 million in the previous fiscal year.
Excluding items noted below (1), consolidated operating profit totaled
$106.8 million and EBIT in Canada was $110.0 million, lower by 7.4%
and 5.2%, respectively
. Consolidated net earnings of $17.7 million, down from net earnings of
$43.6 million a year earlier. Excluding items noted below (2), net
earnings decreased to $51.9 million compared to $59.6 million
. Consolidated net earnings per share of $0.14 compared to $0.34 in the
previous year. Excluding items noted below (2), net earnings per share
decreased from $0.47 per share to $0.41 per share
. Cash flow from operating activities increased 18.1% to $15.0 million
. Consolidated net sales revenue flat at $623.2 million with Canada up
2.3%
. Total Molson beer volume down 7.5%, Brazil volume down 11.1%, volume
in Canada down 2.9%
. Total market share in Canada down 1.1 share points to 41.8% for the
quarter, with core brand share slipping 0.5 share points.
(1) The fiscal 2005 provisions for rationalization charge of $36.1 million
and merger related costs of 8.0 million, both before minority
interest.
(2) The fiscal 2005 after-tax charge for provisions for rationalization of
$36.1 million, merger related costs of $5.3 million and minority
interest of $7.2 million. The fiscal 2004 $16.0 million non-cash
increase in future income tax liabilities.
Third Quarter Financial Performance
Sales From External Customers
-------------------------------------------------------
Three months Three months Nine months Nine months
ended ended ended ended
(Dollars in Dec. 31, Dec. 31, Dec. 31, Dec. 31,
millions) 2004 2003 2004 2003
- --------------- ------------ ------------ ----------- -----------
Canada 634.4 620.4 2,112.3 2,116.1
Brazil 220.9 240.8 532.7 568.0
United States 14.9 15.8 57.1 59.1
Consolidated 870.2 877.0 2,702.1 2,743.2
Net Sales Revenue
-------------------------------------------------------
Three months Three months Nine months Nine months
ended ended ended ended
(Dollars in Dec. 31, Dec. 31, Dec. 31, Dec. 31,
millions) 2004 2003 2004 2003
- --------------- ------------ ------------ ----------- -----------
Canada 493.1 482.0 1,652.3 1,643.9
Brazil 117.5 128.1 271.7 307.1
United States 12.6 13.2 48.6 49.7
Consolidated 623.2 623.3 1,972.6 2,000.7
EBITDA
-------------------------------------------------------
Three months Three months Nine months Nine months
ended ended ended ended
(Dollars in Dec. 31, Dec. 31, Dec. 31, Dec. 31,
millions) 2004 2003 2004 2003
- -------------------- ------------ ------------ ----------- -----------
Canada 120.9 126.2 452.3 463.0
Brazil 3.3 4.5 (38.4) 16.6
United States (1.1) (1.0) (3.4) (2.7)
Totals before the
following: 123.1 129.7 410.5 476.9
Impairment charge -- -- (210.0) --
Merger related costs
and provisions for
rationalization (44.1) -- (63.5) (36.3)
Consolidated 79.0 129.7 137.0 440.6
EBIT
-------------------------------------------------------
Three months Three months Nine months Nine months
ended ended ended ended
(Dollars in Dec. 31, Dec. 31, Dec. 31, Dec. 31,
millions) 2004 2003 2004 2003
- -------------------- ------------ ------------ ----------- -----------
Canada 110.0 116.0 417.6 429.1
Brazil (2.0) 0.3 (55.2) 2.2
United States (1.2) (1.0) (3.5) (2.8)
Totals before the
following: 106.8 115.3 358.9 428.5
Impairment charge -- -- (210.0) --
Merger related costs
and provisions for
rationalization (44.1) -- (63.5) (36.3)
Consolidated 62.7 115.3 85.4 392.2
For the quarter ended December 31, 2004, net sales revenue was virtually
flat at $623.2 million compared to $623.3 million for the same period last year
reflecting lower net sales in Brazil mainly due to lower volumes, offset by
higher net sales in Canada. Consolidated brewing volume decreased by 7.5% to
5.37 million hectolitres versus 5.82 million hectolitres for the same period
last year with volume down by 2.9% and 11.1% in Canada and Brazil respectively.
The Corporation recorded a consolidated operating profit of $62.7 million
for the three months ended December 31, 2004, as a result of non-recurring
charges that totaled $44.1 million, including the closure of the Queimados
brewery in Brazil and Molson Coors merger costs. These charges excluded, the
Corporation recorded a quarterly operating profit of $106.8 million.
Net interest expense for the quarter was $23.6 million, which was $1.3
million higher than the prior year reflecting higher debt and obligations in
Brazil partially offset by an overall decrease in average debt and related
interest expense in Canada.
The consolidated net earnings for the quarter were $17.7 million, down from
net earnings of $43.6 million for the same period last year and net earnings per
share were $0.14 versus net earnings per share of $0.34 in the previous year.
Excluding the third quarter non-recurring items, net earnings were $51.9
million, and net earnings per share totaled $0.41 per share.
Cash provided from operating activities remained relatively strong and
totaled $15.0 million and was 18.1% higher than the corresponding quarter last
year owing to improved working capital, partially offset by lower net earnings
and increased pension funding.
Third Quarter Operational Performance
Volume
Three months ended Nine months ended
December 31 December 31
------------------ ------------------
2004 2003 2004 2003
(Hectolitres in millions) Estimated Actual Estimated Actual
- ---------------------------- --------- ------ --------- ------
Industry volume in Canada(i) 5.31 5.33 17.30 17.34
Molson (Canada) 2.22 2.29 7.32 7.64
Molson production for
shipment to the
United States 0.36 0.39 1.28 1.38
Brazil 2.79 3.14 6.89 7.55
Total Molson volume 5.37 5.82 15.49 16.57
(i) Sources: Brewers of Canada, provincial liquor authorities and industry
distribution companies.
Canada
Third quarter operating profit in Canada totaled $110.0 million, excluding
the merger related costs of $8.0 million. The 5.2% decline in EBIT was
attributable to increased selling and pension costs as well as the strengthening
of the value segment in certain regional markets. Including non-recurring costs,
EBIT totaled $102.0 million, down 12.1% compared to the corresponding period
last year.
Market Share (%)
Three months ended Nine months ended
December 31 December 31
------------------ ------------------
2004 2003 2004 2003
Estimated Actual Estimated Actual
--------- ------ --------- ------
Including sales of imports:
Canada 41.8 42.9 42.3 44.1
Quebec/Atlantic 42.8 42.2 42.8 43.7
Ontario/West 41.2 43.3 42.0 44.3
(i) Sources: Brewers of Canada, provincial liquor authorities and industry
distribution companies.
Brazil
Brazil's EBIT in the quarter was negatively impacted by higher sales centre
costs, as well as lower volumes, but partially offset by lower marketing and
other costs as a result of the timing of certain marketing and other programs.
Total estimated Molson market share in Brazil was 9.7% for the three-month
period ended December 31, 2004, compared to 12.1% for the same period last year,
according to ACNielsen data.
United States
Overall, Molson's total and Canadian(R) trademark volumes in the United
States for the quarter ended December 31, 2004, were down 5.6% and 11.8%,
respectively, compared to the same period last year.
See www.molson.com for complete
Unaudited Financial Statements and Management's Discussion & Analysis
Molson Coors Brewing Company is the fifth-largest brewer in the world, with
pro-forma combined annual volume of 60 million hectoliters and net sales of more
than US$6 billion. Molson Coors has a leading market share in Canada and in the
U.K., a growth profile in the U.S. and an emerging market opportunity in Brazil,
as well as a portfolio of well-established brands including Molson Canadian,
Coors Light and Carling. Founded by pioneering families and tracing its roots
back to 1786, Molson Coors Brewing Company has 18 breweries and 15,000 employees
worldwide.
This press release contains forward-looking statements reflecting
management's current expectations regarding future operating results, economic
performance, financial condition and achievements of the Corporation.
Forward-looking statements are subject to certain risks and uncertainties and
actual results may differ materially. These risks and uncertainties are detailed
in Molson filings with the appropriate securities commissions and include risks
related to foreign exchange, commodity prices, tax matters, foreign investment
and operations as well as contingent liabilities. The Corporation undertakes no
obligation to update or revise any forward-looking statements publicly.
SOURCE Molson Coors Brewing Company
-0- 02/09/2005
/CONTACT: Media, Sylvia Morin, Senior Vice President, Corporate Affairs,
+1-514-590-6345, or Investors and Analysts, Danielle Dagenais, Vice President,
Investor Relations, +1-514-599-5392, both of Molson Coors Brewing Company/
/Web site: http://www.molson.com /
(TAP TAP.)