Shares in Constellation Brands have touched their highest level ever, after the group reported a strong rise in second-quarter sales, which prompted it to raise its full-year forecast.
The group said net sales were up 16.6% to $2.02bn, while operating profit grew by 27% to $610.9m, and net profit was up 16.1% to $353.2m. The group said volumes were boosted by demand for its Mexican beer and craft beer brands. Net beer sales were up 20%, while net wine & spirit sales were up 12%.
The company also raised its full-year adjusted profit forecast to $6.30-$6.45 a share, compared to the $6.05-$6.35 a share it had previously forecast. The results sent shares in the company up to $172 at one point, a record high.
Constellation also announced the acquisition of premium whisky maker High West Distillery, in a deal worth $160m. The move gives it ownership of brands such as American Prairie Bourbon and Double Rye. Constellation CEO Rob Sands noted: “It is a great time to invest in craft American straight whisky, bourbon and rye. Fantastic category – high margin, high growth”.