Constellation Brands announced higher sales in the first quarter and returned to profits as demand for beers remained strong amid rising transportation costs and raw materials.
The U.S. spirits company reported net income of $ 389.4 million in the quarter to May 31, compared with a loss of $ 908.1 million a year ago.
Earnings were $ 2.06 per share, compared to a loss of $ 4.74 per share.
The company’s losses a year ago include impairment charges of $ 665.9 million for the construction of a brewery underway in Mexico.
Excluding extraordinary items, adjusted earnings per share were $ 2.66. Analysts were expecting adjusted earnings of $ 2.52.
Sales rose to $ 2.54 billion before taxes, from $ 2.19 billion a year ago, while analysts expected sales of $ 2.17 billion.
Beer sales increased 21% and wine 2%. Operating margins in both units shrank as rising cost of goods sold offset price increases and other efforts to protect profits.
Source: Capital
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