Constellation Brands lifts full-year guidance after “winning” the 4 July holiday and profit boost from acquisitions
Shares in the US owner of Corona Extra, Constellation Brands, were up in morning trading New York time after the beer and spirits maker posted better-than-expected second quarter revenues.
The figures
Net sales grew 17 per cent to $2.02bn (£1.6bn) in the second quarter, while operating income rose 27 per cent to $611m.
Constellation's beer brands, which include Corona Extra, Corona Light and Pacifico, posted 20 per cent growth during the period.
This was driven by volume growth, boosts from its Ballast Point craft beer acquisition and favourable pricing, though the company also said "strong consumer demand and excellent marketplace execution" had helped it to "win the 4 July holiday".
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Other acquisitions such as The Prisoner and Meiomi wine brands helped push a 12 per cent uplift in its wine and spirits net sales.
Reported earnings per share came in at $1.75 per share and the company has lifted its overall guidance for the year on the back of the results, now forecasting reported earnings per share of $6.25 to $6.40 for the full-year.
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Constellation's stock was up 2.5 per cent to $169.79 per share in by mid-morning US time. The group's shares have increased more than 16 per cent in the year to date.
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Why it's interesting
Today Constellation also announced an agreement to purchase the Utah-based High West Distillery for approximately $160m.
High West, which produces whisky and other spirits brands, has posted double-digit volume growth year-on-year for the past three years.
Read more: US wine sales boost Constellation
"High West will be an excellent addition to our spirits portfolio and we look forward to partnering with the team there to continue to develop distinctive high-quality whiskeys that consumers love," Constellation chief executive and president Rob Sands said in a statement.
What Constellation Brands said
Sands said:
The strong consumer demand for our portfolio continues to propel our business. During the quarter, we gained share and improved margins across our business, while continuing to make smart investments designed to fuel growth today and in future.