Constellation's Acquisitions Help Lift Top, Bottom Lines
June 30 2016 - 8:00AM
Dow Jones News
By Austen Hufford
Constellation Brands Inc. on Thursday posted higher profit and
revenue as a number of acquisitions continued to boost the beer and
wine distributor.
Shares, which have fallen 5.1% in the past three months, climbed
1.2% in premarket trading.
Constellation Brands has had a purchasing spate recently. In the
quarter it closed its $285 million acquisition of Prisoner Wine Co.
The Victor, N.Y., company in August paid about $315 million for
Meiomi, a Pinot Noir wine brand, and in November agreed to pay $1
billion for Ballast Point Brewing Co., the San Diego producer of
Sculpin IPA. Thursday, Constellation said the Ballast brand
continues to have "outstanding" levels of growth.
In the latest quarter, Constellation's net beer sales rose 19%
with help from Ballast, along with volume growth and higher prices.
Constellation became the third-largest beer company by volume in
the U.S. in 2013 after acquiring rights to Corona and Modelo from
Anheuser-Busch InBev NV.
The Meiomi deal helped its wine and spirits segment grow 8%.
Constellation reaffirmed its guidance, saying it expects
adjusted per-share earnings for the year ending in February of
between $6.05 and $6.35. Analysts polled by Thomson Reuters had
expected $6.27.
For the quarter ended in May, Constellation reported a profit of
$318.3 million, or $1.55 a share, up from a profit of $238.6
million, or $1.18 a share a year earlier. Revenue grew 15% to $1.87
billion. Adjusted earnings were $1.54 a share.
Analysts had expected earnings of $1.52 a share on $1.83 billion
in sales.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
June 30, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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