Constellation Brands 2Q Sales Growth Driven by Beer Brands

By Matt Grossman

Constellation Brands Inc. on Wednesday posted an increase in sales in the fiscal second quarter as beer-brand growth drove higher revenue, though the company's adjusted profit fell short of expectations.

The alcoholic-beverages company logged earnings of one cent per share, a decline from $2.62 per share of Class A common stock 12 months earlier. Constellation's net income was $1.5 million, down from $512.1 million in the year-earlier period.

Stripping out one-time items, Constellation's adjusted earnings were $2.38 a share. Analysts surveyed by FactSet had forecast adjusted earnings of $2.79 a share.

Net sales excluding excise taxes were $2.37 billion, a rise from $2.26 billion in the year-ago quarter. Analysts had forecast net sales of $2.3 billion.

Net beer sales for brands such as Corona and Modelo grew 14% year over year to $1.86 billion. Constellation's wine and spirits sales declined 18% to $509.8 million, but grew 15% year over year on an organic basis excluding products that are no longer part of the business, the company said.

Constellation said it earned $120.5 million in earnings from its investment in Canopy Growth Corp., a Canadian cannabis company.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

October 06, 2021 08:09 ET (12:09 GMT)

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