Constellation Brands withdraws guidance

Constellation Brands has pulled its previous financial guidance as economic uncertainty continues to affect consumer spending on alcohol. The US drinks group reported mixed results, with beer holding steady while wine and spirits sales dropped sharply.

The mildly optimistic picture painted by Constellation Brands’ latest results was blurred by the company withdrawing its previous guidance in the face of continuing global economic uncertainty.

The American importer of Modelo and Corona beers said that consumers were more disciplined about how they spent their money on alcohol in the last year, increasingly searching out value through different pack sizes and price points.

In the full year, beer sales slid by 3%.

Weak demand across beer, wine and spirits

Constellation reported lower revenue in its latest quarter as demand for its beer, wines and spirits remains weak. Demand was subdued, especially among the Hispanic population.

“As we look ahead to fiscal 2027, we expect consumers will continue to navigate a shifting macroeconomic environment,” chief executive Bill Newlands said.

“Despite the dynamic operating environment in fiscal 2026, we remained focused on the factors within our control and executed with discipline,” he said in his final comment before handing over to Nicolas Fink next week.

“We expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility,” the company said in a statement.

Lower earnings forecast

Constellation predicts adjusted earnings per share of $11.20 to $11.90, compared with analysts’ projection of $12.38. The company is working on the basis that in the fiscal year just beginning, sales in both its beer and its wine and spirits arms will end up between 1% lower and 1% ahead.

Quarterly results exceed expectations

For the fourth quarter, Constellation made profits of $201.8 million, equating to $1.16 a share, compared with a loss in the same period of 2025 of $375.3 million, or -$2.09 a share.

The consensus analyst expectation was that Constellation would make adjusted earnings per share of $1.71, but the result was encouragingly better at $1.90 per share despite revenues falling by 11% to $1.92 billion. That figure marginally outstripped market expectations of $1.88 billion.

Beer stable but wine and spirits slump

Beer sales rose marginally to $1.73 billion, driven by higher shipments and prices, but wine and spirits sales slumped 58% to $194.2 million on lower shipments due to brand disposals, revised distributor arrangements and the need to lower prices on selected brands.

In the full year beer sales slid by 3%.

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