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Molson shares fall after the error accounts have been exposed


Molson Coors warned that it was "materially weak" in its financial reporting after a brewer identified accounting errors stemming from a $ 12 billion deal it struck three years ago at SABMiller.

Stocks fell 9.5 percent in New York after the company – whose shares include Blue Moon, Carling and Cobra – was re-presented with financial results and reported weaker demand for the US and Canadian capital.

Managers said that the accounting problems arising from the group's acquisition of a 58 percent stake are no longer owned by MillerCoors, the joint venture with SABMiller. The deal paved the way for Sabmuller's takeover by Anheuser-Busch InBev.

The Company identified problems with previously issued financial statements arising from the treatment of deferred tax debts (DTL) – receivable but not yet paid taxes in the joint venture.

In 2016, deferred tax liability and income tax expenses were characterized. This means the number of net profits the company reported in that year was nearly $ 400,000 higher than it used to be.

The next year's problem was further complicated by corporate tax cuts in the US For 2017, the company had a restrained net income of more than $ 150 million.Together, the company said, it consolidated the value of DTL in its balance sheet by $ 248 million And as a result increased its shareholders' equity by the same amount.

"There is a material weakness in not designing and maintaining effective controls over the completeness and accuracy of the accounting treatment of income tax disclosures of the acquired rights of the partnership and their disclosure," the company said in a lawsuit with commission securities.

Management and members of the Board of Directors' Audit Committee examine the "Company policies and procedures relating to the accounting of taxes on income", which were submitted as aforesaid.

Molson Kors exposed the accounting problems along with quarterly results that stressed the pressure on beer manufacturers in the mass market. The industry has encountered stiff competition in craft breweries. Other consumers also choose wine and liqueurs.

Net sales in the last three months of 2018 fell 6.2 percent from a year earlier to $ 2.42 billion. This reflects a 7% drop in US sales, a 8.8% drop in Canada and a 1.9% fall in Europe.

Net profit fell sharply to $ 76 million, from $ 717 million in the same quarter last year, when results boasted a tax rebound in the US The company posted a profit of 84 cents per share, compared with 62 cents last time.

Hunter's chief executive, Mark Hunter, said cost savings helped isolate the company from weaker demand in North America and higher-than-expected inflationary pressures Molson Coors plans to cut spending by $ 200 million this year.

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