Constellation Brands reports sales rose 2% to$2.097 billion. Net profit rose 1% to $646 million, or $2.21 a share. Canopy Growth was a drag on the company’s performance, costing it 20 cents a share.
Bill Newlands, president/CEO, said he was “pleased with our strong start to the year.” He said the wine and spirits sector’s Power Brands “delivered industry leading depletion growth of 4% during the quarter.” The beer portfolio experienced double-digit depletion growth.
While the reported numbers look, at best, lukewarm, David Klein, CFO, insisted the operating results were strong. “We achieved operating cash flow growth of almost 20%.”
Constellation’s beer business posted 7% depletion growth, driven by Modelo Especial, “which captured the top share gainer spot for the entire U.S. beer category with depletion growth of more than 17%.”
Corona Premier was a Top 10U.S. beer market share gainer, the company said, posting double-digit depletion growth, while Corona Refresca launched in May.
“Shipment volume was higher than expected,” the company said.
The vodka business has been tough lately, but Constellation said Svedka grew depletions 6%, driven by strong velocities across the portfolio bolster by the “Bring Your Own Spirit” national advertising campaign.