Constellation Brands Inc. reported a 15% jump in first-quarter
profit, as the alcoholic-beverage maker's Mexican beer segment
continued to propel growth.
The company's Corona Extra and Modelo Especial brands have been
particularly popular in the U.S., bolstering the company's sales as
larger competitors like Anheuser-Busch InBev NV and MillerCoors LLC
have recently struggled with declining volumes. In the latest
period, beer sales rose 11%.
Citing those strong beer sales, the company lifted its full-year
outlook. Constellation now expects per-share earnings of $4.80 to
$5, up from its earlier view of $4.70 to $4.90.
Constellation projects beer sales growth of about 10%; for wine
and spirits, a portfolio that includes brands like Robert Mondavi
and Svedka, the company sees low to mid-single digit sales
improvement.
The company announced Wednesday that it had reached a deal to
buy wine brand Meiomi for about $315 million. The deal will add 3
cents to 4 cents a share to fiscal 2016 earnings, Consellation
said.
In all for the first quarter, Constellation earned $238.6
million, or $1.18 a Class-A share, up from a year-earlier profit of
$206.7 million, or $1.03 a share.
Excluding certain items, per-share profit grew to $1.26 from
$1.07. Revenue increased 6.9% to $1.63 billion after excise
taxes.
Analysts had anticipated $1.24 in earnings per share and $1.6
billion in sales.
Shares in the company, up about 19% this year, rose 2.2%
premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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