Constellation Brands reported strong sales growth in its beer segment for the second quarter, while its cannabis business continued to affect its bottom line.
The Victor-based firm reported a second-quarter net loss before markets opened Thursday of $1.15 million, or $6.30 a share, compared to net income of $1.5 million, or a penny a share, during the same period last year.
Adjusted earnings per share were $3.17, which beat analysts’ consensus estimate of $2.82.
Excluding a 16-cent loss per share from its Canopy Growth business, Constellation had $3.33 in per share earnings.
Sales were up 12 percent to nearly $2.66 billion, driven by a double digit increase in beer revenue.
Beer sales for the quarter were up 15 percent to $2.1 billion, while the wine segment reported sales of nearly $516 million, up one percent from sales in last year’s quarter.
The company also updated its fiscal 2023 guidance and now expects its EPS outlook on a reported basis to be in the range of 75 cents to $1.15 and comparable basis EPS to be $11.20 to $11.60, up from prior guidance of $11.20 to $11.50 a share.
In other news, Constellation announced Thursday that it reached an agreement with The Wine Group to divest a portion of its mainstream and premium wine portfolio, including Cooper & Thief, Crafters Union, The Dreaming Tree, Monkey Bay, 7 Moons and Charles Smith Wines.
Company leaders said the decision builds on its efforts to create a higher-end wine and spirits portfolio with distinctive brands and products.
Constellation divested most of its popular and mainstream wine and spirits portfolio in 2021 and is focused on competing predominantly in premium and fine wine and craft spirits segments, while continuing to invest in the growth of its remaining mainstream wine and spirits assets.
Constellation’s remaining wine and spirits portfolio includes mainstream, premium, fine wine and craft spirits segments, including Meiomi, Kim Crawford, The Prisoner Wine Company, The Robert Mondavi family of brands, High West Whiskey, Casa Noble Tequila and others.
[email protected] / (585) 653-4021l