US: Modelo beer buy dominates Constellation Brands H1 numbers
- H1 net profits hit US$1.57bn
- Net sales in six months to end of August leap to $2.13bn
- Operating profits follow suit, jumping to $1.74bn
- Q2 wine, spirits sales stumble but Modelo buy inclusion bolsters numbers
Constellation Brands completed its US beer purchase at the beginning of the second quarter
Constellation Brands has reported its first set of results since completing the takeover of its Crown Imports beer JV in the US.
The company, which closed its purchase of Grupo Modelo’s US beer business from Anheuser-Busch InBev in early-June, said earlier today (3 October) that net profits in the six months to the end of August totalled US$1.57bn on the back of sales of $2.13bn. Operating profits also leapt, to $1.74bn
In the second quarter, net profits hit $1.52bn with sales coming in at $1.46bn. Operating profits totalled $1.67bn.
The figures were skewed markedly by the inclusion of Crown's full numbers for the first time. As reported in July, net profits in Constellation's Q1 fell by 3% to $74m on a 6.1% lift in net sales, which hit $673.4m.
The Q2 sales performance included $763m related to the consolidation of Crown. While beer sales rose by 3% in the three-month period, Constellation saw its wine and spirits sales dip by 1% due to "higher promotional expense and lower spirits volume".
“As previously discussed, we expect most of our growth for the wine and spirits business to be generated during the second half of the year resulting from the timing of product shipments,” said president & CEO Rob Sands. “Our investments in innovation and advertising behind new products and key focus brands position us for strong marketplace execution during the upcoming holiday selling season."
For the full fiscal year - to the end of February - Constellation said it expects diluted EPS to come in between $9.30 and $9.60 on a reported basis, and between $2.80 and $3.10 on a comparable basis. In fiscal 2013, comparable EPS was $2.19.
To read the company's official statement, click here.
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