Constellation Brands tops profits expectations as beer sales growth spurred by Modelo continues

For its fiscal second quarter of 2024, Constellation Brands posted earnings and revenue that above analysts’ forecasts.

The Modelo Especial and Corona Extra brands’ owner, a Mexican beer behemoth, announced double-digit sales growth in its beer business, which is continuing to rule the high-end and overall beer categories. Sales of wine and spirits were slower than expected.

Based on a poll of analysts conducted by LSEG, formerly known as Refinitiv, below is what Constellation reported for the three months ending August 31 in comparison to what Wall Street anticipated:

Adjusted earnings per share were $3.70 versus the projected $3.36.
Revenue: $2.84 billion vs the anticipated $2.82 billion

Constellation’s beer portfolio experienced 12% sales growth, driven by an 8.7% shipment gain. One particularly promising area was the Modelo brand family: Modelo Especial saw growth of about 9%, while Modelo Chelada brands saw growth of more than 40%.

According to the firm, Modelo Especial continues to be the best-selling brand of beer in the United States.

But year over year, the company’s wine and spirits brands underperformed. Sales in the category dropped by 14%, and depletions—the number of cases a distributor sold to retailers—as measured by the industry—fell by over 8%.