Constellation Brands, which owns brands such as Paul Masson, Modelo and Svedka vodka, has seen net sales in its wine and spirits business rise by 6% in full year 2016/17, according to results published by the firm.
The New York Stock Exchange-listed company said that its beer business was up 17%, driven by a 13% increase in organic net sales, due to volume growth and favourable pricing, as well as the acquisition benefit from the Ballast Point brand.
Overall, the company generated consolidated net sales growth of 12%, and organic net sales growth on a constant currency basis of 9%.
“Fiscal 2017 has been a year marked by operational excellence and record financial performance,” said Rob Sands, president and chief executive officer, Constellation Brands.
“We look forward to building on these results to achieve comparable EPS growth that exceeds our target of at least 10% for fiscal 2018, as we continue to build shareholder value."
Sands said that the group's beer business continues to be a "powerhouse for growth", while its wine and spirits operation "achieved strong earnings growth and margin expansion driven by our fast- growing, high-margin Focus Brands".
For fiscal year 2018, the group's beer business is targeting net sales growth in the range of 9 - 11% and operating income growth in the range of 11 - 13%, while its wine and spirits operation is expected to decrease by between 4 and 6%, due to the recent divesture of its Canadian wine business.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.