just the Facts - Constellation Brands H1
Constellation Brands profits rose by 32% in H1
- Net sales came in broadly flat for the half-year, at US$1.65bn versus $1.67bn a year earlier. CEO Rob Sands said the group was "gaining momentum" in the US following a series of distribution changes, although global net sales fell by 2% in the second quarter.
- Wine sales in the US rose by 3% over the six months and by 5% in the second quarter. However, the firm's Australian and Europe wine business remained in trouble, with sales down by 10% for the half-year and by 14% in the second quarter. Operating losses in this division increased to $54m for the six months, from $41.6m last year.
- Spirits sales dropped by 15% in the second quarter and were down by 9% for the six-month period. However, Sands said that Svedka vodka showed double-digit depletions growth, indicating renewed interest from distributors.
- Crown Imports, the beer joint venture between Constellation and Grupo Modelo, saw operating profits and sales fall by 11% and 3% respectively for the half-year, with a slight improvement in the second quarter. Constellation said that sales volumes lagged depletions, again indicating a pick-up in distributor orders.
- Constellation's net profits jumped by 32% to $140.4m for the six-month period, despite falling by $8.4m to $91.3m in the second quarter. For the full-year comparable EPS is expected to hit between $1.63 to $1.78 for the current year, up from the company's earlier prediction of $1.53 to $1.68. EPS was $1.69 on a comparable basis last year.
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