Corona beer maker Constellation Brands beat second-quarter results estimates yesterday, as robust demand for its popular beer brands helped soften the hit from a slump in its wines and spirits business.
The company has seen persistent demand in the beer segment, its major revenue driver, as consumers continued to spend on its light-bodied beer categories of Modelo Especial and Pacifico varieties.
Weaker Sales
Meanwhile, its wines and spirits business has struggled with weaker sales for several quarters, particularly at retailers, following which the company earlier last month said it will take a $2.5 billion (€2.26 billion) write-down for the unit in the reported quarter.
In September, Constellation also lowered its annual net sales growth forecast to between 4% and 6% from an earlier range of 6% to 7%.
Constellation's shares were down 1.9% in premarket trading on Thursday, after it reaffirmed its annual adjusted profit and sales forecast.
New Global Headquarters
Constellation's peer, Jack Daniel's maker Brown-Forman, missed its first-quarter profit and revenue estimates in August on higher input costs and weaker demand.
The Victor, New York-based company, reported second-quarter adjusted earnings per share of $4.32 (€3.92) in the quarter ended 31 August, beating analysts' average estimate of $4.08 (€3.70), according to data compiled by LSEG.
Earlier this year, Constellation Brands officially opened its new global headquarters at the Aqueduct Building campus, located at 50 East Broad Street in downtown Rochester, New York. The company relocated to the 170,000-square-foot riverfront campus at the start of June.
