Constellation Brands, the maker of Corona beer, exceeds market expectations in the second quarter thanks to strong demand
路透社2026/10/06 21:36Reuters, October 6 - Constellation Brands (STZ.N) reported on Tuesday that its second-quarter profit and sales both exceeded market expectations, thanks to strong demand for its beer products such as Modelo Especial and Victoria, which effectively offset challenges facing the alcohol sector amid weak consumer sentiment. The company also announced that it had acquired SpikedAde, a ready-to-drink (RTD) company with vodka-based products, for at least $75 million, as part of its strategy to expand into new demand segments and strengthen its position in the fast-growing RTD category. Constellation Brands will pay $75 million upon the closing of the SpikedAde deal, and up to an additional $278 million over the next five years, depending on the brand’s performance and the company’s capital allocation priorities. The company’s beer business benefited this year from major sports events, as the FIFA World Cup and NBA Finals boosted viewing parties and social drinking occasions. According to data compiled by London Stock Exchange Group (LSEG), net sales for the quarter ended August 31 rose 6% to $2.63 billion, surpassing analysts’ average estimate of $2.54 billion. Adjusted earnings per share for the quarter were $3.74, above the expected $3.56. The wine and spirits business reported quarterly net sales growth of 17%, while beer increased by 5%. Constellation Brands reaffirmed its fiscal 2027 performance outlook: adjusted earnings per share between $11.20 and $11.90, with organic net sales expected to range from a 1% decline to a 1% increase. The company lowered its annual operating margin forecast from the previous 32%-33% range to between 31% and 32%. Its stock fell 4.5% in after-hours trading, with a year-to-date drop of about 16%. In April, the company withdrew its fiscal 2028 performance outlook, citing a turbulent operating environment and uncertain near-term prospects.
Reuters, October 6 - Constellation Brands STZ.N on Tuesday reported second-quarter profit and sales that both exceeded market expectations, thanks to strong demand for its beer products such as Modelo Especial and Victoria, which effectively offset challenges facing the alcohol industry amid weakened consumer spending.
The company also said it had acquired SpikedAde, a ready-to-drink (RTD) beverage company based on vodka, for at least $75 million, as part of its strategy to expand into new demand areas and consolidate its position in the fast-growing RTD category.
The company will pay $75 million upon closing the SpikedAde transaction and up to an additional $278 million over the next five years, depending on the brand’s performance and Constellation Brands’ capital allocation priorities.
Constellation Brands’ beer business benefited this year from major sporting events, with the FIFA World Cup and NBA Finals driving an increase in watch parties and social drinking occasions.
According to data compiled by London Stock Exchange Group (LSEG), quarterly net sales for the period ended August 31 rose 6% to $2.63 billion, while analysts on average expected $2.54 billion.
Adjusted earnings per share for the quarter were $3.74, higher than the expected $3.56.
Its wine and spirits business saw quarterly net sales rise 17%, while the beer business grew 5%.
Constellation Brands reiterated its fiscal 2027 outlook: Adjusted earnings per share between $11.20 and $11.90, with organic net sales expected to range from a 1% decline to 1% growth.
The company lowered its annual operating margin forecast to between 31% and 32%, from the previous 32% to 33% expectation.
Its share price dropped 4.5% in after-hours trading. Year to date, the stock is down about 16%.
The company withdrew its fiscal 2028 outlook in April (link), citing a volatile operating environment and uncertain short-term prospects.
(To facilitate non-native English speakers, Reuters automatically translates its reports into several other languages. As automated translation may be inaccurate or lack the necessary context, Reuters does not guarantee the accuracy of the automated translation and provides it solely for reader convenience. Reuters accepts no responsibility for any damage or loss incurred as a result of using the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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