Constellation Brands: targets 'impressive' growth this year

(CercleFinance.com) - Alcoholic beverage maker Constellation Brands is targeting "impressive" sales and earnings growth for the coming year, after generating record operating cash flow in fiscal year 2017/2018.


In the fourth quarter of fiscal 2017/2018, which ended on 28 February, Constellation had net income of 516 million dollars, down 27% year-on-year.

However, net sales rose 8% to 1.77 billion dollars, helped by strong portfolio depletion performance, which was driven by the Modelo and Corona beer brands.

For fiscal 2018/2019, the beer business is expected to see net sales and operating income grow between 9% and 11%, Constellation said.

For the wine and spirits business, the company expects net sales and operating income growth to be in the range of 2% to 4%.

Constellation shares are up 2% at 224.9 dollars in early trading on the New York Stock Exchange.

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