E-Malt. E-Malt.com News article: USA: Constellation Brands says beer sales continued to drive revenue and profit growth in latest quarter

Go back! News start menu!
[Top industry news] [Brewery news] [Malt news ] [Barley news] [Hops news] [More news] [All news] [Search news archive] [Publish your news] [News calendar] [News by countries]
E-Malt.com News article: USA: Constellation Brands says beer sales continued to drive revenue and profit growth in latest quarter
Brewery news

Constellation Brands Inc. on January 5 said beer sales continued to drive revenue and profit growth for the latest quarter, even as investors continue to be concerned about the impact of the incoming Donald Trump administration on the company that produces much of its beer in Mexico.

Still, beer sales growth declined from faster rates seen in previous quarters.

Constellation's third-quarter profit came in above Wall Street forecasts, while revenue met expectations.

Constellation grew in the years following its $5.3 billion acquisition of the U.S. distribution rights for Corona, several other Mexican beers and a Mexican brewery. The election of Mr. Trump and his focus on promoting American-produced goods has spooked some investors. Shares are down 15% from their October record to their December low, even as broader stock markets have grown sharply.

Recently, the company has been shifting around its portfolio by buying and selling some smaller brands and operations. During the quarter, Constellation acquired craft whiskey maker High West Distillery in a $137 million deal that expands the alcohol company's business into the fast-growing bourbon and rye categories. The company also completed the purchase of an Obregon, Mexico brewery from Grupo Modelo, a subsidiary of Anheuser-Busch InBev NV, for $583 million.

Over the past year, Constellation also acquired luxury winemaker Prisoner Wine Co. and craft-beer brewer Ballast Point. The company completed the sale of its Canadian wine business to Ontario Teachers' Pension Plan for about $581 million.

The company also raised its profit forecast for the year. It now expects to bring in adjusted per-share earnings of $6.55 to $6.65, compared with its previous estimate of $6.30 and $6.45. The change primarily reflects a lower tax rate, the company said. Analysts polled by Thomson Reuters had expected adjusted earnings per share of $6.46.

In the latest quarter, Constellation's beer sales, not counting acquisitions, rose 12% from volume growth and higher prices. That is down from the 15% organic beer growth seen in the first and second quarters.

Wine and spirits posted 1% organic revenue growth, helped by a more profitable mix of products sold but hurt by volume declines.

The company said it shipped 12% more 24-pack beer equivalents in its latest quarter than the same quarter a year ago.

For the quarter ended in November, Constellation reported a profit of $406 million, or $1.98 a share, up from $270.5 million, or $1.33 a share, a year earlier. Adjusted earnings were $1.96 a share.

Net sales grew 10% to $1.81 billion.

Analysts had expected earnings of $1.96 a share on revenue of $1.81 billion.

06 January, 2017

| Printer friendly |

Copyright © E-Malt s.a. 2001 - 2011