Constellation Brands Inc. reports third quarter sales of $2.507 billion, down 5% from the year-earlier $2.644 billion. But a $171.8 million loss at Canopy Brands, in which the company has a significant interest, resulted in net income plunging 62% to $470.8 million, or $2.48 a Class A common share from $1.281 billion, or $6.55 a share. .
Except for Canopy’s losses, Constellation said it would have seen an 8% growth in earnings per share to $3.42 a share. Since it invested in Canopy, Constellation has recognized a $424.4 million unrealized net loss.
Constellation’s beer business saw depletion growth exceed 8%, driven by continued strength of Modelo Especial and Corona Extra, gaining 1.3 market share points. The company noted Modelo Especial saw depletions grow 13% and was the No.1 brand share gainer in the entire U.S. beer category. Modelo Chelada depletions soared 35%.
Constellation”s wine and spirits business reported sales fell 25% to $568 million from $760.2 million, reflecting the disposal of wine brands last year. On a comparable basis, sales roe 3% to $568 million from $549.9 million
Bill Newslands, president/ceo, noted the obvious when he said the Beer Business “delivered strong results despite tough prior year comparisons.” the wine and spirits business “delivered high-end share gains and margin expansion.”