Constellation Brands’ Q1 results – Preview

Constellation Brands will report its first-quarter results on Thursday. Here, just-drinks takes a closer look at the company’s performance in the three months to the end of May:

• The quarter began with a recall of Corona Extra bottles in the US, amid fears they may contain glass particles
• At the start of April, Constellation announced plans to pay US$285m for a range of US luxury wines that included Napa Valley red blend The Prisoner
• At the same time, the company released its full-year results. In the notes that followed, analysts suggested Constellation could split its beer and wine & spirits divisions, after the company said it was considering an IPO for a portion of its Canadian wine business
• In a post-results conference call, Constellation’s CEO Rob Sands said the global spirits brand space was “not of great interest” to his company
• Meanwhile, Sands also said that an east coast US brewery could be on the cards for its Californian craft beer unit, Ballast Point. In May, Constellation confirmed plans to build a brewery in Virginia

 Full Year & Q4 results highlights: 

• Full-year net profits jumped 25.7% to US$1.05bn
• Net sales in 12 months to the end of February rose 8.3% to $7.22bn
• Operating profits climbed 17.7% to $1.77bn
• Q4 net profits increased 13.4% to $243.4m
• Sales in the quarter were up 12.9% to $1.7bn
• Operating profits rose 16.2% to $411.1m

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