UPDATE 1-Molson Coors reports higher profit despite weak demand
Aug 6 (Reuters) - Molson Coors Brewing Co reported a higher-than-expected quarterly profit on Tuesday as last year's Central European acquisition offset weak beer demand that the company expects to persist through the end of the year.
The second-quarter results also benefited from improved international results and a lower tax rate in Canada, Chief Executive Officer Peter Swinburn said.
Net income rose to $278.4 million, or $1.51 per share, from $105.1 million, or 57 cents per share, a year earlier.
Analysts on average expected a profit of $1.38 per share, according to Thomson Reuters I/B/E/S.
Net sales rose 17.9 percent to $1.18 billion from $999.4 million.
Shares of Molson Coors were up 2.5 percent at $51.31 in trading before the market opened.
The company said its above-premium beverage portfolio gained market share in the quarter, while most of its major brands held steady in their respective markets.
However, Molson Coors said it expected consumer demand to remain weak through 2013 and that it would spend more money on marketing and innovation to increase sales.
MillerCoors, the combined U.S. operations of Molson Coors and SABMiller, reported a 5.3 percent decline in second-quarter net income Tuesday, citing low volume and a difficult quarter for the beer industry overall.