Constellation Brands reported a better-than-expected quarterly profit on Wednesday, driven by higher sales of its Corona and Modelo beer brands.
(Via Reuters/Capital)
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.
Don’t drink and drive. Enjoy responsibly.