Constellation Brands will report its full-year results on Wednesday (10 April). Here just-drinks takes a look at the group’s highs and lows in the three months to the end of February, plus its financial progress last year.
- The major Constellation story in the quarter was the US Government’s move to block Anheuser-Busch InBev’s US$20.1bn acquisition of Grupo Modelo. Constellation is due to capture full control of Crown Imports by buying out Modelo’s 50% stake in the distributor, but suddenly found its way blocked by events outside its control. The company said it was “disappointed” with the Department of Justice’s decision when news of the block broke in January.
- A day later, the company had sharpened its tone, saying the DOJ had an “incomplete understanding” of the takeover. Analysts, however, we still confident the deal would go ahead.
- A week later, and Constellation decided to roll up its sleeves and get stuck into the legal battle. In a motion the company requested that its interests and those of the US JV, Crown Imports, “are represented as part of the US DOJ’s complaint against the proposed A-B InBev acquisition of Modelo”. As of last week, the deal is poised to complete.
- At the end of the quarter, Constellation announced it is adding two new board members, Robert Hanson and Judy Schmeling.
- In other HR news, the company in December said it was replacing Canada boss Eric Morham with Ben Dollard. Morham has been Constellation Canadian head since 2009.
For Constellation’s year-to-date.
Net profits fell by 10.5% to US$306.1m
Sales rose by 3.6% to $2.10bn
Operating profits dipped by 2.9% to $395.5m
In H1
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By GlobalDataNet profits fell by 17.1% to $196.6m
Net sales inched up by 0.6% to $1.33bn
Operating profits dropped by 4.1% to $236.7m
In Q1
Net profits dropped 3.4% to $72m
Net sales remained flat at $634.8m
Operating profits increased by 4.3% to 106.1m
