Molson Coors shares under pressure amid accounting errors
Molson Coors Brewing Co. (TAP.N) fell as much as 7 per cent in early trading after the company posted sales that missed projections and said it was restating two years of results over tax accounting errors.
Sales amounted to US$2.42 billion last quarter, the company said Tuesday. That fell short of the US$2.54 billion average of analysts’ estimates.
Molson Coors has struggled to boost volume growth in the U.S., its biggest market, as consumers often opt for wine and spirits. That measure sank 5.1 per cent in the fourth quarter, driven by declines in its premium light and economy products. Volumes also dropped in Canada, while its European and international businesses continue to be bright spots.
Meantime, the brewer is restating results for 2016 and 2017 related to deferred tax liabilities for its partnership in MillerCoors. Management concluded that the impact of the errors are “not material,” but there had been a “material weakness” in the company’s internal control over financial reporting.
The shares fell as low as US$60.80 in light premarket trading. They had climbed 16 per cent this year through Monday’s close, double the gain in the S&P 500 Index.