• Full-year net profits jump by 25.7% to US$1.05bn
  • Net sales in 12 months to end of February rise by 8.3% to $7.22bn
  • Operating profits climb by 17.7% to $1.77bn
  • Q4 net profits increase by 13.4% to $243.4m
  • Sales in the quarter up by 12.9% to $1.7bn
  • Operating profits rise by 16.2% to $411.1m
Constellation Brands has enjoyed a strong fiscal-2016

Constellation Brands has enjoyed a strong fiscal-2016

Constellation Brands has seen its healthy momentum continue through to the end of its fiscal year, with net profits increasing by just over a quarter.

Earlier today, the group reported a 25.7% jump in its bottom line for the 12 months to the end of February. Net sales in the period were also up, by just over 8%.

Could Constellation split its beer and wine & spirits operations? Click here for details

In organic terms, beer sales rose by 13% thanks to a 12% volumes lift and favourable pricing. The company's wine & spirits operations posted a 3% increase in full-year sales, as Constellation cycled a planned US distributor inventory destocking in fiscal-2015.

Despite slower net profit growth in the fourth quarter, which was up by 13% in the three months, compared to 22% in Q3, CEO Rob Sands hailed a strong full-year. "It has proved to be another dynamic year of ... impressive financial results for Constellation," he said. "Our beer business delivered industry-leading market results as the number one growth contributor in the US beer category. In our wine and spirits business, we further strengthened the financial profile by channeling resources and brand-building investments toward higher-growth, higher-margin brands.

"We are excited to build on the success of fiscal 2016, as we are targeting impressive results for the coming year."

Looking forward, the group's beer business is targetting full-year increases in both sales and operating profits of between 14% and 17%. Wine and spirits are expected to deliver a mid single-digit rise in sales and a mid to high single-digit range lift in operating profits. Full-year earnings-per-share for the group should come in between $6.05 and $6.35, with fiscal-2016 EPS totalling $5.43.

Today's results coincide with the company's announcement that it has agreed to pay US$285m for a range of US luxury wines that includes Napa Valley red blend The Prisoner. The Prisoner Wine Co's portfolio comprises four other brands - Saldo, Cuttings, Blindfold and Thorn.

For a look at Constellation's performance by category, click here