US: Constellation Brands sees Q1 boosted by beer consolidation
- Q1 net profits soar, up 290% to US$206.7m
- Sales in three months to end of May double, up 126.6% to $1.53bn
- Operating profits increase by 456% to $392.2m
- Beer business purchase boosts Q1 numbers
Constellation Brands saw wine and spirits sales dip in Q1
Constellation Brands has posted an impressive-looking set of Q1 results, although wine and spirit sales slipped in the period.
The company, which bought out its beer JV partner in the US last year, saw sales and profits soar in the three months to the end of May. Sales of US$1.53bn were boosted by $868m of incremental sales related to the consolidation of the beer business, while operating profits of $392.2m benefited from $288m as a result of the move.
The buy-out of Grupo Modelo made Constellation's Crown Imports division become the third biggest beer supplier in the US.
While beer sales rose in the quarter increased by 14%, wine and spirits sales were down by 1% on a constant currency basis. Constellation blamed lower shipment volumes due to "planned distributor inventory destocking".
President & CEO Rob Sands said:"We posted a great quarter reflecting outstanding results for our beer business as well as wine and spirits performance that was generally in-line with our expectations."
The company raised its full-year earnings outlook by between 2% and 3%. EPS is forecast to come in between $3.90 and $4.05 per share on a reported basis. "These strong results are driving the upward revision to our EPS guidance for fiscal 2015," Sands added.
To read the company's official statement, click here.
For coverage of Constellation's post-results conference call, click here.
The imminent departure of Constellation Brands' CFO has put the wind up many in the financial community, less so because of the speed of the move, more because of his past achievements....
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