Constellation Brands Q2 Profit Tops Estimates; Beer Business Net Sales Up 15%
Constellation Brands, Inc. (STZ) said it delivered another quarter of strong business performance. Beer Business achieved double-digit net sales growth for the quarter, while Wine and Spirits net sales rose 1%. The solid top-line performance of its Beer and Wine and Spirits Businesses in the first half has given the company confidence to increase their net sales outlook for the full-year.
The Beer Business now expects net sales growth of 8-10%, for fiscal 2023. The Wine and Spirits Business now projects fiscal 2023 net sales decline of 0-2%.
“We are on-track to exceed our goal to return $5 billion to shareholders by fiscal year-end,” said Garth Hankinson, CFO.
Second quarter comparable EPS was $3.17 compared to $2.38, a year ago. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $2.81, for the quarter. Analysts’ estimates typically exclude special items. EPS, comparable basis, excluding Canopy equity losses, increased to $3.33 from $2.52.
Net loss attributable to CBI was $1.15 billion compared to profit of $1.5 million, last year. Loss per class A common stock was $6.30 compared to profit of $0.01.
Net sales were $2.66 billion compared to $2.37 billion, previous year. Analysts on average had estimated $2.51 billion in revenue.
For fiscal 2023, the company estimates earnings per share, on a comparable basis, excluding Canopy, in a range of $11.20-$11.60.
On October 5, 2022, Constellation’s board declared a quarterly dividend of $0.80 per share of class A common stock and $0.72 per share of class B convertible common stock, payable on November 18, 2022, to stockholders of record as of the close of business on November 4, 2022.
Constellation Brands also announced it has reached an agreement with The Wine Group to divest a portion of its mainstream and premium wine portfolio, including Cooper & Thief, Crafters Union, The Dreaming Tree, Monkey Bay, 7 Moons, and Charles Smith Wines.
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