Published: Вс, Апреля 07, 2019
Business | By Eloise Houston

Corona Brewer to Sell about 30 Brands

Corona Brewer to Sell about 30 Brands

Constellation Brands Inc on Thursday reported quarterly sales and profit that beat Wall Street forecasts, benefiting from new beer launches in its Corona and Modelo brands, though wine sales struggled.

Beer continues to lead the way for Constellation, with sales up 11.6% to $5.2 billion and operating income increasing 11% to $2 billion.

Beer sales in the fourth quarter rose 9.3% to $1.09 billion, driven by the Modelo and Corona brands.

Constellation's fourth quarter and full-year results help bolster the decision the Victor-based company announced on Wednesday, to sell around 30 wine and spirits labels to E. & J. Gallo Winery for $1.7 billion.

Constellation retains a host of brands including Robert Mondavi, Meiomi and Kim Crawford. Vanguard Group Inc. now owns 12,013,148 shares of the company's stock valued at $2,590,276,000 after buying an additional 30,782 shares during the period.

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Looking ahead to the 2020 fiscal year, the company said that it sees comparable earnings of $8.50 to $8.80 per share, with operating income from its beer division rising between 7% and 9%, while wine and spirits are expected to see a net decline in sales of 25% to 30%.

Apart from being focused on premium alcoholic beverages, Constellation Brands is also optimistic about capitalizing on the growth opportunities in the cannabis market through its significant investment in Canopy Growth (CGC). This spring, it plans to launch Corona Refresca, a malt beverage available in passionfruit lime, guava lime and coconut lime flavors. During the same quarter in the prior year, the business earned $1.90 earnings per share.

The divested wines last fiscal year accounted for $1.1 billion in sales, or about 40% of the company's wine and spirits sales. The company expects to cut between $35 million to $55 million in costs in fiscal 2020 and $75 million to $95 million in costs for fiscal 2021.

Constellation Brands Inc. shares were trading at $187.27 per share on Thursday morning, up $7.58 (+4.22%).

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