Constellation Brands 1Q Sales Rise on Demand For Beer
June 30 2022 - 8:11AM
Dow Jones News
By Will Feuer
Constellation Brands Inc. posted higher first-quarter sales and
swung to a profit as demand for beer remained strong amid surging
transportation, brewing and raw-material costs.
The Victor, N.Y.-based beer, wine and spirits maker logged net
income attributable to the company of $389.5 million for the three
months ended May 31, compared with a loss of $908.1 million a year
earlier. Earnings were $2.06 a share, compared with a loss of $4.74
a share.
The company's year-ago loss included a $665.9 million impairment
charge for brewery construction in progress in Mexico.
Excluding one-time items, Constellation posted adjusted earnings
of $2.66 a share. Analysts polled by FactSet were expecting
adjusted earnings of $2.52 a share.
Sales rose to $2.54 billion, before excise taxes, from $2.19
billion last year. Analysts surveyed by FactSet were expecting
sales of $2.17 billion.
The company saw 21% growth in beer sales and 2% growth in wine
sales, it said. The company said that its operating margin in both
its beer and wine business contracted as an increase in cost of
goods sold outpaced price increases and other efforts to protect
profits.
Also in the recently ended quarter, Constellation Brands
recognized a $22 million decrease in the fair value of its 2017
investment in cannabis company Canopy Growth Corp. Constellation
Brands has recognized a $556 unrealized loss since its initial
investment in the company.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
June 30, 2022 07:56 ET (11:56 GMT)
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