US: Constellation Q3 driven by brands and currency
Boosted by a strong performance in its branded wines, UK wholesale division, spirits business and positive currency effects, the world's largest wine group Constellation Brands has reported record sales for the third quarter.
Net sales increased 10% to top US$1 billion for the second consecutive quarter. Currency contributed four percent of the increase.
"Constellation's beverage alcohol business growth continues to be dynamic, with growth coming from existing brands in our wine and spirits portfolios, as well as from new product introductions, line extensions and marketing initiatives," said Richard Sands, Constellation Brands chairman and chief executive officer.
"We're also experiencing healthy growth from the Australian and New Zealand wines, as well as from our wholesale business in the United Kingdom. We're confident in the sustainability of our business growth trend, as well as our ability to create incremental value for our shareholders, customers and retailers."
Constellation's net income increased 17% for the third quarter, to US$96.9m, and reported diluted earnings per share increased 14% to US$0.83.
Net sales at the group's wine division grew 14% to US$773.8m, driven by growth in branded wine net sales and the UK wholesale business, as well as a six percent favourable impact from currency.
Worldwide branded wine net sales increased 11%, to reach US$509.5m, driven by volume growth and a four percent benefit from currency.
Operating income for Constellation Wines for the third quarter increased 13% to reach US$127.7m. For the quarter, operating margins were essentially even with last year on a percentage basis.
Net sales for the quarter at the group's spirits and beer business totalled US$311.9m, which was up 2% compared to last year's result. Beers net sales decreased 2% due to a reduction in volume driven primarily by last year's buy-in ahead of the Mexican portfolio price increase.
Spirits net sales increased 11% on strong growth in production services, bulk sales in the Canadian operations and continued growth in the branded business.
The global roll-out of InBev's Brazilian beer, Brahma, adds a third premium brand to the global brewer's international portfolio but some observers have suggested it's an unnecessary step which threat...
The Hardy Wine Company has posted a record grape harvest....
Constellation Brands is to launch a new Australian wine brand onto the US market through its North Lake Wines. The wine will be called Kelly's Revenge....
Alcohol intake amongst young female adults in the UK continues to rise and shows no signs of abating, according to a recent report....
Cobra Beer has launched an alcohol-free beer in South Africa, the UK and in its European and Asian export markets....
Yesterday we ran a story that innaccurately gave details of plans by Constellation Brands to make job cuts at Robert Mondavi. In fact the cuts have already been made and the details of the restructuri...
Constellation has released details of the salaries for its leading executives next year....
The equity analyst Legg Mason has raised its fiscal 2006 EPS targets for the US drinks group Constellation Brands to US$3.18 from US$3.12, saying it believed the company's attractive growth profile re...
- How Treasury is rewriting the rule book - Comment
- Craft spirits shake-out will be just the beginning
- Drinkable yogurt - The next drinks opportunity
- Has Diet Coke passed its sell-by date? - Comment
- Coca-Cola India suspends bottling operations
- Diageo brands need "fixing and nurturing" - TWE
- SAB shareholders granted AB InBev vote split
- This week in wine & spirits on just-drinks
- Spirits volumes slide in Global Travel Retail
- Pernod Ricard wins Ron Matusalem 'Cuba' legal row
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages