Sign In
Upcoming Event
Free Newsletter
Constellation Brands celebrates major growth in 2018
Constellation Brands celebrates major growth in 2018
Constellation Brands’ annual earnings report shows market-leading growth in profits, with nearly 30 percent gain in earnings per share in 2017.
In the fiscal year ending in February 2018, Constellation showed earnings of nearly $7.6 billion and a growth in profits of 45.5 percent.
Shareholders saw their earnings per share rise to $8.72 as the company swelled its profits and investment in the beer sector, and benefited from federal tax reform.
“We are in the enviable position of being the growth leader in the US beer industry,” said Constellation CEO Rob Sands in a conference call about the annual report.
Wine and spirits sales increased as well, but by a more modest 5 percent after a period of flatter sales.
Constellation had plenty to cheer about with beer, however.
“Our beer business continues to be a powerhouse of growth,” Sands said, with the company growing in that area for 31 quarters in a row. Constellation expanded sales particularly in the Corona and Casa Modelo brands of beer.
Sands described Modelo’s growth as leading in several ways—quadrupling to 110 million cases a year, becoming the fastest-growing beer in the country, the highest household penetration of beers in the United States and the No. 1 beer in California.
Sands described a company-wide emphasis on premium brands across all categories.
Highlights of the report included:
- Adding capacity at Constellation’s Nava brewery glass plant to handle additional bottling business.
- Expanding holding capacity of beverages from about 34 hectoliters at the end of next year to 44 hectoliters by the year 2023.
- Investing in medical marijuana.
- Savings in taxes of $363 million due to federal tax reform.
Marketing campaigns associated with Cinco de Mayo celebrations and a number of sporting events.
Chief Financial Officer David Klein forecast sunny days ahead for the company, too.
“Last year we grew 10 percent. This year we set ourselves up to grow 9-10 percent. We’re setting ourselves up to grow at that range for the foreseeable future,” Klein said.
[email protected]/(585) 363-7275
e
