Constellation Brands: profit climbs, boosted by Modelo beer

(CercleFinance.com) - Constellation Brands said that its profit jumped in its latest quarter and launched a new share buyback program as the liquor maker continues to benefit from strong beer sales.


For the third quarter ended 30 November, the company, based in Victor, New York, reported an operating profit of 835 million dollars, up 30% year-on-year.

Earnings before interest and taxes (EBIT) rose by 35% to 818 million dollars.

Constellation, which distributes Corona in the US, said beer sales volumes climbed 27%, propelled by demand for the Modelo, Corona and Pacifico brands.

Its board of directors also approved a new two billion dollar share repurchase program, with 1.9 billion dollars still remaining on a previous authorization.

In its statement, Constellation said that the sale of a portion of its wine and spirits business to Gallo has improved its financial profile, allowing further debt reduction, meaning that the company now plans to return five billion dollars to shareholders through dividends and share repurchases in fiscal 2023.

Constellation shares, which have risen by 22% over the past 12 months, are up 6% in early morning trading on Thursday.

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