The US wine group, Constellation Brands, posted a 28% fall in net income for the second quarter as a result of restructuring and other charges. While sales were boosted by 32% thanks to the company's acquisition of Australian wine company, BRL Hardy, net income fell from US$49.5m, or 53 cents a share, to US$34.7m, or 34 cents a share, in the quarter to the end of August.

Excluding the US$31m charge related to restructuring and other unusual charges after tax, net income would have been US$66m, the company said. Sales for the quarter rose by 32% to US$908.7m.

The results for the quarter were ahead of a forecast which Constellation issued in July when it said net income would be in the range of 24 cents to 27 cents including acquisition and restructuring charges. The results were also at the upper end of most analysts' forecasts.

There were however concerns. In a note today, Mark Swartzburg, the drinks analyst with Legg Mason said that the BRL Hardy business was "delivering growth substantially below that presumed by its purchase price."

He went on: "Topline growth for the business was up 6% in 2Q, compared to up mid-teens in the 12 months prior to Constellation buying the company and in the first two months of Constellation's ownership.

"Contributing factors include UK retailer destocking. Unit growth, we expect, will improve in 3Q if for no other reason than comparisons, but this level of growth is well below that presumed by the US$1.4 bn Constellation paid for the business."

Constellation is forecasting third-quarter earnings after charges in the range of 65 cents to 69 cents a share and earnings after charges for the full year of US$1.89 to US$1.96 a share.