Corona Beer Maker Constellation Forecasts Annual Profits Above Estimates

By Reuters
Corona Beer Maker Constellation Forecasts Annual Profits Above Estimates

Constellation Brands forecast annual profit above analyst expectations on Thursday based on resilient demand for its core beer brands despite inflationary challenges.

Demand across the company’s beer brands such as Modelo Especial and Pacifico remained strong in spite of high living expenses.

The Corona beer maker expects annual comparable earnings per share for 2025 to reach $13.50 to $13.80. This is above Wall Street expectations of $13.42 per share.

Quarterly sales of Constellation and its peer Molson Coors grew compared to Jack Daniels maker Brown-Forman and brewer Anheuser-Busch InBev, both of which saw a dip in volumes.

The company’s beer business reported an 8.9% depletion growth – the rate at which products are sold – in the December-to-February quarter.

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This is down compared to 6% growth last year.

Constellations was able to counter increased costs for packaging and raw materials through benefits from sales growth, price hikes, reduced marketing expenses and cost effective initiatives.

The company, which also makes spirits and wines, saw the operating margin of its beer business rise by 30 basis points to 34.4%.

However, quarterly net sales declined 6% in its wines and spirits business, as wholesalers across international markets cut back on stocking high-priced premium brands.

The company posted net sales of $2.14 billion for the fourth quarter ending 29 February, above analysts’ average estimate of $2.10 billion.

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Comparable earnings per share were $2.26, beating estimates of $2.08 per share, according to data from the London Stock Exchange Group.

Shares for Constellation were up about 1% in premarket trading.

Read More: Fevertree’s Annual Profit On Par With Estimates

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