US: Constellation Brands posts YTD sales surge on Crown Imports buy
- YTD net profits up 480% to US$1.8bn
- Net sales climbed by 66% to $4bn
- Operating profits 434% to $2.1bn
The group has been boosted by its full takeover of Crown Imports
Constellation Brands has increased its year-to-date sales by two-thirds as its takeover of the Crown Imports JV dominates both its top line and bottom lines.
Net profits leapt by 480% to US$1.8bn in the nine months to the end of November, Constellation said today (8 January). Most of the gain, which also saw operating profits jump by 430% to $2.1bn, came from a re-evaluation of Constellation's existing equity in Crown Imports, which the company previously operated with Grupo Modelo.
Net sales jumped by 66% to $4bn in the nine-month period, of which the Crown Import acquisition accounted for $662m, Constellation said.
Third-quarter results were similarly buoyant, with net profits up by 93% to $211m and net sales up by 88% to $1.4bn.
“I am very pleased with the overall performance of our newly consolidated beer business, which is the highlight of the third quarter,” said Constellation Brands president & CEO Rob Sands. “The strong marketplace momentum we experienced this summer for our beer portfolio, especially Corona and Modelo Especial, continued throughout the fall and into the holiday selling season.”
Constellation took full control of Modelo's US beer business in June after Anheuser-Busch InBev bought the Mexican brewer for US$20.1bn. As part of the deal, Constellation took ownership of the Piedras Negras brewery in Mexico, which Sands today confirmed is continuing with an expansion plan to double capacity.
Looking ahead, the company said its beer business is expected to post a low to mid-teens profits growth for the full year, while wine and spirits will stay flat.
As of 10am, Constellation's share price was up 10% on the New York Stock Exchange.
To read the company's official statement, click here.
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