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Constellation Brands reports 47% net income drop
Constellation Brands, the owner of wine brands including Robert Mondavi, Hardy’s, Clos du Bois and Ravenswood, today announced a 47% fall in net income in its fiscal third quarter.
The US-based company’s figures were better than many predicted, with consumers around the world trading down to lower-priced drinks due to the global recession.
The company said net income fell 47% to $44.1 million, or 20 cents per share, in its fiscal third quarter, ended on November 30, from $83.5 million, or 38 cents per share, a year earlier.
Excluding certain items, Constellation earned 54 cents per share. Analysts had forecast, on average, 52 cents, according to Thomson Reuters I/B/E/S.
Net sales fell 4%. The company, which also makes Svedka vodka and owns 50% of a joint venture that imports Grupo Modelo beers like Corona into the United States, said some of the sales decline stemmed from the divestiture of some of its spirits products.
Constellation said its share of earnings from the joint venture fell 26% during the quarter.
The company reaffirmed its earnings forecast for fiscal 2010, ending in February, of $1.60 to $1.70 per share, excluding one-time items.
Alan Lodge, 07.01.2010