Key Takeaways
- Constellation Brands, the maker of Corona and Modelo beers, posted mixed second-quarter results as wine and spirits sales sank.
- The maker of Modelo Especial and Corona beer posted strong overall beer sales in the quarter.
- CEO Bill Newlands said the beverage alcohol market has been negatively impacted by the “current macroeconomic backdrop.”
Constellation Brands (STZ), the maker of Corona and Modelo beers, posted mixed second-quarter results as wine and spirits sales sank.
The company reported second-quarter fiscal 2025 diluted earnings per share of $4.32, above estimates from analysts surveyed by Visible Alpha. However, revenue was short of forecasts, rising 2.9% to $2.92 billion.
Constellation Brands shares were down 3.6% in early-afternoon trading, pushing the stock into negative territory for the year.
Beer sales mainly increased. Second-quarter sales of Modelo Especial, the top selling beer in the U.S., rose 5% and those of Pacifico surged around 23%, while those of Corona Extra dropped 3%.
Macro Backdrop Weighs on Demand
Wine and spirits sales fell 12% to $388.7 million, however, dragged down by a 9.8% slide in shipment volumes.
CEO Bill Newlands said “the current macroeconomic backdrop has weighed on demand for beverage alcohol,” as well as overall consumer packaged goods.
The company said it sees full-year net sales growth in the range of 4% to 6%, with beer sales up 6%-8% and wine and spirits sales down 4% to 6%.