Constellation Brands: beats forecasts on beer sales

(CercleFinance.com) - Alcoholic beverage maker Constellation Brands reported higher-than-expected quarterly sales and profit on Thursday, helped by the performance of its Modelo and Corona beer brands.


Constellation's net income rose to 1.24 billion dollars, or 6.57 dollars per share, in the three months ended 28 February, from 910.5 million dollars, or 4.76 dollars per share, a year earlier.

Constellation's sales rose to 1.97 billion dollars in the fourth quarter, from 1.93 billion dollars in the same period a year ago.

Beer sales rose by 9% to 1.09 billion dollars in the quarter.

The company said its beer business has been the top US market share gainer over the winter holiday season, driven by Modelo Especial, Corona Premier and Corona Familiar.

The group also provided outlook for its financial year 2019/2020, saying that it expects basis EPS of 8.47 dollars-8.77 dollars, including the impact of the wine divestiture that it announced yesterday.

Yet, the outlook excludes the impact of the investment in Canadian cannabis firm Canopy Growth.

The company's shares are up almost 3% in premarket trading on Thursday.

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