US: Constellation Brands toasts Crown Imports for Q1, but sales slide

Most popular

Why brown spirits is behind low- & no-alc curve

Pernod is back in Kentucky, but why did it leave?

Anheuser-Busch InBev Performance Trends 2014-2018

How UK craft brewers are winning with Generation Z

The opportunity for no-alcohol in the on-premise

  • Q1 net sales dip by 19% due to Aus, UK wine divestment
  • Reported net profits up by 51.7%, comparably up by 1%
  • Operating profits lift by 5.6%
  • Crown Imports hailed for driving Q1 performance

Constellation Brands has posted a marked fall in net sales in its first fiscal quarter results, but has highlighted the sell-off of its Australian and UK wine business for the decrease.


US-based Constellation said this morning that net sales in the three months to the end of May came in 19% down on a year earlier, at US$635.3m. Net profits on a reported basis, however, leapt by 51.7% to $74.5m, with operating profits coming in 5.6% up at $101.7m.

The slide in sales was put down primarily to the divestiture of the Australian and UK wine business last year, with the operating profits rise credited to reduced corporate costs, an improvement in the North American operating results and the sale of the aforementioned wine division, which "generated an operating loss in the first quarter last year", the company said.

In comparable terms, net profits were flat, coming in just 1% up on a year ago at $84m, with operating profits increasing by 12% to $116m.

The company also highlighted its beer sales and distribution JV with Grupo Modelo in the US, Crown Imports, as enjoying a healthy first quarter. Net profits from the unit hit $60m, a 10% lift on a year-earlier, with sales rising by 9% and operating profits increasing by 10%. "The increase in net sales and operating income for Crown was primarily driven by volume growth due in part to the ongoing launch of the Victoria brand," the firm said.

Constellation's president and CEO, Rob Sands, professed himself "pleased" with the company's performance in the quarter."We believe focused marketing efforts at Crown are driving momentum in the beer business,” he noted. “With the sale of our Australian and UK business, we have significantly improved our financial profile and simplified our business. As a result, we are taking the next logical step to increase efficiencies and streamline our operations worldwide."

Looking forward, however, Constellation has revised its full-year EPS outlook on a reported basis downwards from a previous forecast of a maximum of $2.00 to between $1.82 and $1.92. On a comparable basis, the company's estimates remain flat on the previous year's $1.91 within an expected range of $1.90 to $2.00.

To read the company's official release, click here.

Related Content

Fiscal year starts with more manageable sales lift for Constellation Brands - Q1 2018 results

Fiscal year starts with more manageable sales lift for Constellation Brands - Q1 2018 results...

Constellation Brands' fiscal-2018 - results data

Constellation Brands' fiscal-2018 - results data...

Constellation Brands Q4 & FY 2017 results - Preview

Constellation Brands Q4 & FY 2017 results - Preview...

Constellation Brands' Q3 & YTD 2018 results - Preview

Constellation Brands' Q3 & YTD 2018 results - Preview...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..

Forgot your password?