Subscribe Login
Drinks

Corona Beer Maker Constellation's Quarterly Profit Misses Estimates

By Dave Simpson

Constellation Brands Inc reported a lower-than-expected quarterly profit due to higher marketing and transportation costs, leading the Corona beer maker to maintain its full-year earnings forecast that missed estimates.

Constellation said higher freight costs, rising dollar and increased marketing hit first-quarter operating margin of its beer business by 230 basis points at 37.8%.

The company said marketing expenses rose 1.1% as it had to make upfront investments to promote its new beers, Corona Premier and Corona Familiar.

Get a FREE Digital Subscription!

Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy

The maker of Robert Mondavi wine and Svedka vodka reaffirmed its full-year earnings forecast of $9.40 to $9.70 per share, well under analysts' estimate of $9.73, according to Thomson Reuters I/B/E/S.

Net income attributable to the company rose to $743.8 million, or $3.77 per Class A share, in the first quarter ended May 31, from $398.5 million, or $1.98 per share, a year earlier.

Excluding items, the company earned $2.20 per share, missing analysts' average estimate of $2.43.

Net sales rose 6% to $2.05 billion.

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

Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription
Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription