US: Profits slide slows for Constellation Brands in Q3

• Net profits in fiscal year-so-far fall by 10.5% to US$306.1m
• Sales in nine months to end of November rise by 3.6% to $2.10bn
• Operating profits in nine-month period dip by 2.9% to $395.5m
• Company remains "on track" to meet FY "financial and strategic goals"

Constellation Brands has seen the fall in profits in its year so far slow in the third quarter, with the company expecting to hit its full-year targets.

The US-based beer, wine and spirits company said earlier today (9 January) that net profits in the nine months to the end of November were down by 10.5% to US$306.1m. Sales in the fiscal year-to-date increased by 3.6% to $2.10bn, while operating profits fell by 2.9% to $395.5m.

For the third quarter, to the end of November, net profits rose by 4.5% to $109.5m as sales climbed by 9.4% to $766.9m. Operating profits were flat, coming in 0.9% down at $158.8m.

The numbers mirrored the overall performance of Constellation in its half-year, although the net profits drop was less marked in the year so far, thanks to the third quarter numbers.

Wine and spirit net sales in the year-to-date were up by 4% and by 9% in Q3, while operating profits climbed by 3% in YTD and by 14% in the third quarter.

Constellation's plans to fully acquire the Crown Imports beer joint-venture, following Anheuser-Busch InBev's buy-out of Grupo Modelo, remains on course to complete before the end of March, the company noted.

The Crown Imports unit saw net sales in the third quarter inch up by 1% to $547m, although operating profits fell by 9% to $79m.

“The year is unfolding as we expected and we are on track to meet our financial and strategic goals for the year,” said company president & CEO Rob Sands. “We were well positioned at retail during the key holiday selling season."

The company raised its full-year reported EPS target range from between $1.87 and $1.97 to between $1.97 and $2.07. The latest forecast excludes any impact from the purchase of the outstanding half of Crown Imports.

For the company's official statement, click here.