Constellation Brands outperforms market consensus with its beers
Constellation Brands reported a better-than-expected quarterly profit on Wednesday, driven by higher sales of its Corona and Modelo beer brands.
The U.S. company raised its profit forecast for the full fiscal year ending in February. The stock, which has gained about 34% since the start of the year, was up 3.8% at $136.25 in pre-market trading on Wall Street.
Constellation Brands benefits from the appeal of its beer brands to the growing Hispanic population in the United States.
The group reported a 14% increase in beer sales to $1.02 billion (€906 million) in the three months to August 31. Beer accounted for around 59% of total sales.
Wine and spirits sales, on the other hand, fell by 0.3% to $713.9 million. Overall, sales for Constellation Brands increased by 8.1% to US$1.73 billion.
Attributable net income was $302.4 million, or $1.49 per share, compared with $195.8 million (98 cents per share) a year earlier. Excluding exceptional items, the company earned $1.56 per share.
Analysts had expected an average of $1.32 per share on sales of $1.73 billion, according to Thomson Reuters I/B/E/S.
The beer market is buzzing as world leader AB InBev plans to buy competitor SABMiller for €92.5 billion. If successful, the deal would create a giant that would control a third of the world market, but SABMiller has so far rejected its rival’s bids.
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