News

How did Constellation Brands perform in H1 fiscal-2020? - results data

Most popular

Why COVID-19 has restored plastic's popularity

Brown-Forman Performance Trends 2016-2020 - data

Remy Cointreau Performance Trends 2016-2020

COVID-19 a double-edged sword for CBD

How drinks companies can trump the water fountain

MORE
  • First-half sales rise 2.2% to US$4.44bn
  • Six-month beer sales up 7%, mirroring Q1 performance
  • Wine down 9%, spirits slip 2%
  • Second quarter sees group top-line increase 2% to $2.34bn
  • Further delay to wine & spirits divestment to E&J Gallo

Constellation Brands has seen its first-half deliver a low single-digit lift in sales, with the second quarter echoing the 2% increase in the first three months of the group's current fiscal-year.

The group said earlier today that its top-line rose 2.2% in the six months to the end of August. Constellation's beer business in the US maintained the 7% Q1 sales increase over the full six months.

Constellation Brands First-Half Fiscal-2020 - Sales by Segment

Source: Company results

In wine and spirits, the company noted that "transition activities with distributors" impacted performance negatively. The divestment of around 30 lower-end wine and spirits brands to E&J Gallo, announced in April, is the reason for the transition activities. However, Constellation said today the transaction, which hit a hold-up five months ago, has still not completed. "The wine and spirits transaction is now assumed to close at the end of third-quarter," the company said.

Constellation suffered a reversal of fortune in spirits during the second quarter - the 6% lift in sales from Q1 was followed by an 8% slump in the second quarter of fiscal-2020. "As the wine and spirits business transformation strategy evolves under a new set of strategic imperatives, select promotional retail activities for key brands that occurred during last year's second quarter were discontinued this year as they did not meet the return targets for the business," the group noted.

The bottom line took a hammering in the six months, with Constellation posting net losses of $770.6m compared to net profits of $1.89bn a year ago. The performance relates predominantly to Constellation's holding in Canadian cannabis producer Canopy Growth. In late-August, the group flagged it would take a hit in its first half as a result of Canopy's 12-month net losses, reported a month earlier. 

CEO Bill Newlands

"The winning streak for our beer business continues with Modelo Especial generating the most growth in the entire US beer category, while Corona remains the number one high-end beer brand family. This powerful combination gives us confidence in high-single digit beer growth for years to come.

"Our wine and spirits innovation pipeline is primed to launch impactful product introductions, as we head into the key selling season this fall."

Constellation Brands Fiscal-2020 - Sales versus 2019

Source: Company results

For the full-year, Constellation said it expects beer sales to rise by between 7% and 9%, with wine and spirits combined expected to be down by 15% to 20%.

To read Constellation Brands' official half-year results statement, click here.

Why we all need to lift our heads out of our drinks - Consumer Trends


Related Content

How did Remy Cointreau perform in H1 2020? - results data

How did Remy Cointreau perform in H1 2020? - results data...

How did Constellation Brands perform in Q1 fiscal-2020? - results data

How did Constellation Brands perform in Q1 fiscal-2020? - results data...

How did Constellation Brands perform in its Q2? - results data

How did Constellation Brands perform in its Q2? - results data...

How has Constellation Brands performed in fiscal-2020? - results data

How has Constellation Brands performed in fiscal-2020? - results data...

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?