Constellation Profits Surge In Q4, Bolstered By Strong Beer SalesApril 9, 2014
Constellation Brands nearly doubled its profits in its fiscal fourth quarter (ended February 28), with net income rising 92% to $157 million. Net sales, meanwhile, were up 86% to roughly $1.3 billion. Constellation president and chief executive officer Rob Sands credited the company’s beer unit for much of the growth, citing strong sales of Modelo Especial and Corona Extra in particular.
“Our beer business exceeded our expectations for the year. The overall portfolio continued to significantly outperform the growth of the U.S. beer market with depletions increasing almost 8%,” said Sands in a statement. Constellation is in the process of expanding its Nava, Mexico-based brewery and expects to invest between $900 million-$1.1 billion in the project, which is slated to be completed by calendar 2016.
For the full fiscal year, Constellation’s net income hit $1.9 billion, while net sales totaled around $4.8 billion. Net sales for the beer segment were up 10% for the 12 months, while wine and spirits grew net sales by 2% and depletions by 3.5%, with wine volumes partially offset by “higher promotional expense, unfavorable mix and lower bulk spirits sales. Highlights within Constellation’s wine stable, however, included positive performances by the Rex Goliath, Mark West, Kim Crawford, Simi and Estancia brands, among others.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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