Constellation Brands brews higher profit in Q2 thanks to beer sales
Constellation Brands posted a quarterly profit which beat Wall Street estimates for the ninth straight quarter in a row.
Constellation Brands reported sales of $2.08bn and net income of $499.5mn, according to a company release.
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The driving force for the company's growth was its beer division, which includes Mexican brands Corona, Modelo Especial and Pacifico, as well as craft selections such as Ballast Point and Funky Buddha.
The company raised its profits outlook due to the sale of more premium beers and breweries ran at peak levels in the summer.
It’s premium Corona and Modelo beers are also seeing increased demand due to a rising Hispanic population in the United States, analysts have said.
In the US, Constellation Brands accounted for more than 60% of the growth in high-end beer sales, with three of its brands listed in the top ten market share gainers.
Rob Sands, Constellation Brands' CEO said: “We remain the leader in the high-end of the U.S. beer market, and we are reaping the benefits of our Wine and Spirits premiumization efforts,”
The company, which also makes other beverages such as Robert Mondavi wines and SVEDKA vodka, lifted its full-year profit forecast to $8.25 to $8.40 per share.
The company, however, kept its forecast for sales growth of 4% to 6%, excluding the impact of divestitures.