© Kyle May/Flickr
Constellation Brands has recorded third-quarter profits of $491.1 million, a rise of 21% compared with the same period last year.
The company attributed the rise to the strong performance of its beer segment, citing increased sales of Corona Extra and Modelo Especial during Labor Day and Thanksgiving.
However, Constellation recorded a net sales drop of 1% for the same period, dropping to $1.8 billion from $1.81 billion in Q3 2016.
Rob Sands, CEO of Constellation brands said: “It’s been a dynamic time for our business. In 2017, Constellation was one of the best performers among S&P 500 Consumer Staples stocks driven by the overall strength of our results and the ongoing growth prospects for our business.”
Beer was the biggest contributor to overall profit, with gross profit in the segment rising by 14% to $567 million, and a net sales rise of 8% to $1.04 billion.
Wine and spirits net sales fell by 10% to $759 million, and gross profit fell 11% to $344.3 million.
In October, Constellation purchased medicinal marijuana producer Canopy Growth, leading to speculation it would produce a range of cannabis-infused beverages.
Sands stated that this would lead to further growth in the future: “We recently established a first mover advantage in an emerging consumer category with our investment in Canopy Growth.”
© FoodBev Media Ltd 2024