Constellation Brands Q2 Sales Up 6%

By Ahmed Jamerson • Wednesday, October 07 01:49 • Permanent Link

Constellation Brands reported second-quarter fiscal 2027 net sales of $2.633 billion, up 6% from $2.473 billion a year earlier, while operating income fell 8% to $805 million from $877 million. Earnings per share rose 25% to $3.32 from $2.66.

On a comparable basis, operating income increased 1% to $897 million from $885 million, and comparable EPS rose 3% to $3.74 from $3.63.

Beer remained the company’s largest driver. Beer net sales increased 5% to $2.474 billion from $2.345 billion, with shipment volumes up 5.5% to 123.9 million 24-pack, 12-ounce case equivalents from 117.4 million. Beer operating income rose 1% to $964.2 million from $951.6 million. Beer depletions slipped 0.6% to 123.9 million from 117.4 million, with Modelo Especial down about 2% and Corona Extra down about 5%, partly offset by Pacifico, Victoria and Modelo Chelada brands, which grew about 19%, 15% and 5%, respectively.

Wine and spirits delivered the sharpest growth. Net sales rose 17% to $159.4 million from $136.0 million, shipment volumes increased 15.4% to 1.5 million 9-liter case equivalents from 1.3 million, and operating income swung to a profit of $6.1 million from a loss of $19.8 million a year earlier. Depletions climbed 10.2%, led by Kim Crawford and Mi Campo, which grew about 11% and 51%.

For the first half of fiscal 2027, operating cash flow totaled $1.5 billion, down 1% from the prior year, while free cash flow rose 4% to $1.1 billion. The company said it repurchased $530 million of stock year to date through September 2026 and returned more than $800 million to shareholders through buybacks and dividends during the first half.

Constellation updated its fiscal 2027 reported EPS outlook to $11.85 to $12.55 from prior-year actual EPS of $9.61. It reaffirmed comparable EPS guidance of $11.20 to $11.90 versus $11.82 in fiscal 2026, along with operating cash flow guidance of $2.4 billion to $2.5 billion and free cash flow guidance of $1.6 billion to $1.7 billion.

The board declared a quarterly dividend of $1.03 per share, unchanged from the latest payout level cited in the release. Following these announcements, the company's shares moved 0.39%, and are now trading at a price of $113.31. If you want to know more, read the company's complete 8-K report here.

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