Constellation Brands has updated its EPS guidance for the financial year 2022 on the back of solid performance in its beer business and ongoing share purchase activity.
The company’s beer business delivered double-digit net sales growth of 14%, to $1.9 billion (€1.6 billion), in the three months ended 31 August 2021.
The company attributed this growth to the performance of Modelo Especial and Corona Extra.
Modelo Especial achieved a 16% depletion volume growth, while Corona Extra reported depletion volume growth of nearly 5%.
Constellation Brands’ net sales (reported) for the quarter amounted to $2.4 billion (€2.08 billion) on a reported basis, up 5% year-on-year. Operating cash flow for the quarter amounted to $1.5 billion (€1.3 billion), up 6% year-on-year.
Bill Newlands, president and chief executive of Constellation Brands, said, "The strong performance of our core beer business, driven by robust consumer demand for our iconic brands, gives us the confidence to increase our guidance for the year."
The company’s wine and spirits business saw solid organic net sales growth, driven by the performance of The Prisoner Brand Family, Kim Crawford, and Meiomi. Organic net sales in the division increased by 15%, to $509.8 million.
Sales of its wine and spirits in the e-commerce channel, including direct-to-consumer, have increased 3 to 4 times versus 2019 levels.
The company has updated its EPS outlook to $0.30-$0.60 on a reported basis, while the comparable EPS outlook now stands between $10.15 and $10.45.
Chief financial officer, Garth Hankinson, added, "We executed a significant number of share repurchases during the second quarter as we believe our stock is undervalued at current levels. This represents progress towards achieving our goal of returning $5 billion in value to shareholders through dividends and share repurchases."
Recently, Constellation Brands announced plans to move its global headquarters from Victor, N.Y. to the Aqueduct Building campus located at 50 East Broad Street, downtown Rochester, N.Y.