Constellation marks On Tuesday, he reported gains and quarterly income that lost the estimates of the analysts as the beer demand slid and the aluminum tariffs weighed their profitability.
Even so, the brewer reiterated his prognosis for fiscal year 2026, showing the confidence that he can achieve his financial objectives despite the weakest quarterly performance of what was expected and the upper tasks.
The shares of the company fell less than 1% in extended operations on Tuesday night, but increased 3% during the morning negotiation on Wednesday after the company's telephone conference.
The action has thrown more than 20% of its value this year, fed by concerns about how the duties higher taxes by President Donald Trump would affect the demand for his beer.
This is what the company reported compared to what Wall Street expected, based on an LSEG analysts survey:
- Profit per action: $ 3.22 adjusted compared to $ 3.31 expected
- Revenue: $ 2.52 billion compared to $ 2.55 billion
The report, which covers the three months ended on May 31, includes the beginning of Trump's tariffs on imports of canned beer in early April. It also rose the commercial tariffs over 25% aluminum in mid -March and 50% at the beginning of June.
Both imported beer and aluminum are crucial for the Constellation beer business, which represents approximately 80% of the company's general revenues. The constellation beer portfolio only includes Mexican imports, such as Corona, Pacifico and Special Model, which beat Bud Light as the best -selling beer brand in the United States two years ago.
Constellation reported a net fiscal income of the first quarter of $ 516.1 million, or $ 2.90 per share, below $ 877 million, or $ 4.78 per share, a year earlier. Constellation's operational margin fell 150 basic points, or 1.5%, in the quarter, partly driven by higher aluminum costs.
Excluding articles, the brewer won $ 3.22 per share.
Net sales fell 5.8% to $ 2.52 billion, fueled by the weakest demand for its beer and the disinversion of Svedka Vodka of the company.
Constellation still faces the softest demand of the consumer, said CEO Bill Newlands in a statement. He attributed the weakest sales to “non -structural socio -economic factors.” Constellation's beer business saw that shipping volumes fell 3.3%, caused by a weaker demand for consumers.
The last quarter, Newlands said that Hispanic consumers were buying less from the company's beer due to fears about Trump's immigration policy. Approximately half of constellation beer sales come from Hispanic consumers, according to the company.
But on Wednesday, Newlands turned when asked about the feeling of the Hispanic consumer, saying that all buyers are concerned about the highest prices.
“When you see a good amount of change, Spanish and non -Hispanic consumers are concerned about inflation and cost structure,” said Newlands.
He added that consumers do not go out to eat so much and organize less social occasions, which means they are drinking less beer. Even so, he argued that consumer's interest in drinking beer has not decreased; While the general spending of buyers in beer has fallen, their relative spending on beer compared to their total grocery bill has remained stable.
For fiscal year 2026, Constellation continues to wait comparable profits of $ 12.60 to $ 12.90. The company is projecting that organic net sales range from a 2% decrease to 1% increase.
