In this picture illustration, bottles of Modelo Especial beer sit on a desk on June 14, 2023 in Los Angeles, California.
Mario Tama | Getty Images
Constellation Brands on Thursday reported earnings and income that topped analysts’ expectations for its fiscal second quarter of 2024.
The Mexican beer powerhouse, proprietor of the Modelo Especial and Corona Extra manufacturers, reported double-digit gross sales progress in its beer enterprise as the division continues to dominate the general beer and high-end classes. Meanwhile gross sales of wine and spirits lagged.
The firm raised its fiscal 2024 earnings per share outlook to a spread of $9.60 to $9.80, up from a previous vary of $9.35 to $9.65.
Here’s what Constellation reported for the three months ended August 31, in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by LSEG, previously recognized as Refinitiv:
- Earnings per share: $3.70 adjusted vs. $3.36 anticipated
- Revenue: $2.84 billion vs. $2.82 billion anticipated
Constellation’s beer portfolio posted 12% gross sales progress, boosted by 8.7% progress in shipments. The Modelo model household was a selected brilliant spot: Modelo Especial grew practically 9%, whereas Modelo Chelada manufacturers posted progress of greater than 40%.
Modelo Especial stays the best-selling model within the U.S. beer class, the corporate mentioned.
The firm’s wine and spirits manufacturers, nevertheless, underperformed 12 months over 12 months. The class posted a 14% lower in gross sales and practically 8% lower in depletions — an trade time period for the variety of circumstances bought to retailers by a distributor.
The division wasn’t with out its standout manufacturers, although: Constellation’s Meiomi and Kim Crawford wine manufacturers noticed 7% and 6% depletion progress, respectively, whereas its craft spirit, Mi Campo tequila, reported greater than 60% depletion progress.
“We proceed to count on stable progress acceleration and margin enchancment from our general Wine and Spirits Business within the second half,” mentioned CEO Bill Newlands.
Back in June, the corporate delivered an earnings beat and reiterated its forecast. In its earlier quarter, beer gross sales rose 11% 12 months over 12 months pushed by secure client demand and better pricing.