- Sales in three months to end of February climb 7% to US$2.14bn
- Financial year finishes up 5% at $9.96bn
- Beer sales jump 11% in Q4, +9% in fiscal ’24
- Combined wine & spirits decline 8% in 12 months
- Fiscal 2025 forecast for sales set at between +6% and +7%
The performance capped off a year of sales lifts and marked an improvement on Q3’s +1% top-line rise. Subsequently, the fiscal full year concluded with an overall climb of 5% in sales terms.
The three-month period had Constellation’s beer operations, which concentrate solely on the US, to thank yet again as the Corona, Modelo and Pacifico portfolio jumped by a combined 11%. In the results commentary, CEO Bill Newlands flagged a “56th consecutive quarter of volume growth” for the beer business.
Over in the considerably smaller wine and spirits divisions, the former’s -9% quarterly sales were shadowed by spirits’ increase of 16% (both in reported terms). Organic sales, which does not factor in currency exchange fluctuations, were up for the combined units by 6% in Q4, but fell back 8% for the 12 months.
Returning to the commentary and Constellation said the full-year performance from beer had exceeded its outlook, with Modelo Especial earning credit for a near-10% depletions rise. Constellation also flagged the benefit of one extra selling day in the final quarter, thanks to 2024 being a leap year.
“Wholesale unfavourability” in the US, meanwhile, combined with challenging “marketplace dynamics” to squeeze wine and spirits, the group noted, with pressure being felt throughout fiscal 2024 on its mainstream and premium brands.
“These results were driven by [the] sustained growth of our … beer brands that continue to gain share,” said Newlands. “As we head into fiscal 2025, we remain confident … about the growth trajectory of our beer portfolio.
“We continue to see growth potential in our wine and spirits business as we focus on strong commercial and operational execution.”
For the current financial year, the +6%-to-+7% sales performance forecast, announced today, would see Constellation break the $10bn barrier for the first time.
