Constellation’s Sales Up 2% In Second QuarterOctober 3, 2019
Constellation Brands saw net sales increase 2% to $2.3 billion in its fiscal second quarter ended in August, as operating income grew 1% on a comparable basis to $792 million.
Constellation’s beer portfolio continued to shine, led by Modelo Especial. The Mexican import posted 15% depletion growth, while Corona Refresca, Corona Premier, and Pacifico also contributed to 6.2% depletion growth overall in beer. The segment generated $1.6 billion in net sales in the second quarter, up 7% year-on-year.
The wine and spirits side slumped, however, as net sales dropped 9% to $704 million, and operating income shed 20% to $160.4 million. Constellation says the distributor transition process ahead of its pending $1.7 billion sale of 30 wine brands to Gallo affected the wine and spirits unit during the quarter. That sale is now set to close before the end of Constellation’s fiscal year next February.
Meanwhile, Constellation’s quarterly equity losses on its investment in Canopy Growth totaled $484.4 million on a reported basis due to a warrant modification in June, or a loss of $54.7 million on a comparable basis.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.