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Constellation Brands tops expectations for Q1 sales, profit

Rochester Business Journal
July 2, 2014

Constellation Brands Inc. beat analyst estimates with its first-quarter sales and profit, as the beer side of the business continues to drive growth at the Victor-based firm.

The company reported Wednesday morning net income of $206.7 million, or $1.03 a diluted share, versus net income of $52.9 million, or 27 cents a diluted share, the previous year.

Sales were up 127 percent to $1.53 billion from $673 million a year ago.

Analysts polled by Thomson Reuters expected Constellation Brands to report sales of nearly $1.49 billion. They also expected earnings per share of 92 cents.
 
"We posted a great quarter reflecting outstanding results for our beer business as well as wine and spirits performance that was generally in-line with our expectations," said Robert Sands, president and CEO, in a statement. "Within our beer business, we continue to capitalize on our industry-leading performance and excellent retail execution across our entire Mexican beer portfolio.”

Shares of Constellation Brands (NYSE: STZ) were trading midday at $91.12, up 3 percent from Tuesday’s close of $88.38. Earlier in the day, the stock hit a 52-week high at $94.77.

Driving the growth was the acquisition last June of Grupo Modelo S.A.B. de C.V.’s U.S. beer business from Anheuser-Busch InBev SA for some $5.3 billion.

The increase in consolidated net sales was driven by $868 million of incremental net sales related to the consolidation of Crown Imports` commercial beer business, the company reported. For the quarter, net sales for the beer segment increased 14 percent, primarily due to volume growth driven by strong consumer demand.

Constellation Brands expects full-year earnings per share of $3.90 to $4.05.

 (c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
 

 


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