Drinks

Corona Beer Maker Constellation Sees 2024 Profit Above Estimates On Price Hikes

By Dave Simpson
Corona Beer Maker Constellation Sees 2024 Profit Above Estimates On Price Hikes

Constellation Brands Inc has forecast full-year profit above Wall Street estimates, benefiting from price increases aimed at combating elevated costs and strong demand for its high-end beer brands.

Raising Prices To Shield Margins

Like other spirit makers, the company has been raising prices of its beer, wine and spirits to shield its margins from soaring costs of packaging, raw materials, logistics and labour.

Consumers Stuck To Premium Brands And Demand Remains Robust

Even as inflation impacted spending habits, Constellation said its consumers stuck to its premium beer brands including Modelo Especial and Corona Extra. Demand for its premium and fine wine has also remained robust.

Beer Segment Looks Set For Strong Fiscal 2024

Analysts have said that the company's beer segment looks set for a strong fiscal 2024 with price hikes and new product launches, including Modelo Oro beer in the United States despite an uncertain consumer environment.

Full-Year Adjusted Profit Per Share Expectation

Constellation said that it expected full-year adjusted profit per share between $11.70 and $12.00, compared with analysts' average estimate of $11.68 per share, according to Refinitiv data.

ADVERTISEMENT

Adjusted Earnings Per Share Top Analysts' Expectations

Constellation also posted adjusted earnings of $1.98 per share for the quarter ended 28 February, topping analysts' expectations of $1.82 per share.

Revenue Falls And Misses Analysts' Average Estimate

Known for brands such as Kim Crawford and SVEDKA Vodka, Constellation, however, said that revenue fell 5% to about $2.0 billion, missing analysts' average estimate of $2.02 billion.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.