High Costs Hit Miller Earnings

Offset improved pricing.

Miller Brewing Company’s earnings declined for the fiscal year ended March 31 as higher raw material and packaging costs offset improved pricing, Miller parent company SABMiller plc reported on Thursday.

According to the SABMiller trading update, Miller’s sales-to-retailers were flat from the prior fiscal year. Backing out the Sparks and Steel Reserve brands acquired last year from McKenzie River Brewing Company, STRs dropped by 3 percent

Miller’s STRs (not including Sparks and Steel Reserve) dropped by 2.3 percent in the fourth quarter.

Miller Lite STRs declined by 1 percent for the full year.

Miller’s “worthmore” portfolio -- a strategic priority of the company that includes Leinenkugel’s, Peroni Nastro Azzurro, Pilsner Urquell and Sparks -- experienced a 21 percent increase in STRs for the fiscal year with an acceleration in the fourth quarter.

To see the trading update, click here.