Victor, N.Y.-based Constellation Brands released its third quarter fiscal year 2019 results. Excluding per share data, the company reported third-quarter net sales of $1.9 billion, a 9 percent change over the prior-year period.
Driven by sales of its Modelo and Corona brand families, Constellation reported that its beer division had net sales of $1.2 billion, a 16 percent increase over fiscal year 2017, it said. These results within the company’s beer business for the third quarter were the most significant share gains in the U.S. beer industry, it stated.
In wine and spirits, the company reported net sales of $762 million for the three months ending Nov. 30, 2018, a 0.4 percent increase over the $759 million reported in the comparable prior-year period.
The company also generated $2 billion of operating cash flow and $1.4 billion of free cash flow, an increase of 34 percent and 77 percent, respectively, it said.
Constellation reports that its fiscal 2019 operating cash flow target is approximately $2.45 billion and its free cash flow projection is $1.2-$1.3 billion.
“The results delivered by our beer business mark the highlight of our third quarter performance. The Modelo and Corona brand families continue to be on fire, fueled by strong velocities, excellent distribution gains and highly incremental innovation,” said Rob Sands, chief executive officer of Constellation Brands, in a statement. “Our leadership in the high-end U.S. beer industry positioned us to be the most significant growth contributor at retail during the quarter.”
The company also completed an additional $4 billion investment in Canopy Growth Corp., and plans to return $4.5 billion to shareholders in dividends and share repurchases through fiscal year 2022, it says. BI