Constellation Brands forecast annual profit above Wall Street expectations on Thursday, banking on resilient demand for its core beer brands despite sticky inflation.
Demand across the company’s beer brands like Modelo Especial and Pacifico remained strong as consumers stretched their budgets even though living expenses persistently rise.
Constellation expects annual comparable earnings per share for 2025 in the range of $13.50 to $13.80, compared with analysts’ average estimates of $13.42 per share.
Quarterly sales of Constellation and peer Molson Coors grew in contrast with Jack Daniel maker Brown-Forman and top brewer Anheuser-Busch InBev, which saw a dip in volumes.
The company’s beer business for the reported December-to-February quarter, saw a 8.9% depletion growth – the rate at which products are sold – compared with a growth of 6% last year.
With the benefits arising from sales growth, price hikes, reduced marketing expenses and cost efficient initiatives, Constellation was able to counter higher packaging and raw material and costs.
