Focus - Constellation Brands Half-Year Results
Constellation Brands released its H1 results earlier today
Earlier today (3 October), Constellation Brands released its half-year and Q2 results. With the company completing the full takeover of its Crown Imports beer JV in June, the figures were skewed heavily versus the corresponding period a year earlier. Here, we look a little closer at Constellation's performance.
Net sales from the beer division in the second quarter rose by 3% year-on-year to US$814.6m. Half-year sales were up by 4% to $1.58bn. Depletion volumes - meaning shipments from distributors to retailers in the US - rose by 7.1% in Q2 and by 5.2% in the half-year.
Constellation included the full results from Crown for the first time in its Q2 figures.
Net sales from Constellation's wine operations inched up by 2% in Q2 to $629.1m, with half-year sales increasing by 4% to $1.23bn.
Spirits struggled throughout the six month period: In the three months to the end of August, spirits sales plunged by 18% to $67.9m, and by 8% to $144m.
Operating profits from Constellation's wine and spirits operations were hit by higher promotional expense and grape costs, and the timing of shipments for the year. The company said that it expects most of the growth from wine and spirits to come in the second half of its fiscal year, "resulting from the timing of product shipments".
To read the company's official statement, click here.
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