CBrands Net Soars 26.2% As Sales Eased 3.5%

Constellation Brands reports net income after tax soared 26.2% to $653.8 million, or $3.79 a share, from $516.1 million, or $3.43 a share, despite a 3.5% decline in net sales to $2.43 billion from a year earlier $2.52 billion.

The Beer Business delivered both net sales and operating income growth of 2% and outperformed the total beer category by nearly 3 percentage points in year-over-year dollar sales across Circana U.S. tracked channels.

• Modelo Especial maintained its position as the No. 1 brand in dollar sales and was the No. 7 dollar share gainer, and within the brand family Modelo Chelada Limón y Sal was the No. 8 dollar share gainer;
• Corona Extra remains a top 5 brand in dollar sales, and within the brand family Corona Familiar was the No. 11 dollar share gainer; and
• Pacifico and Victoria were the No.2 and No. 14 dollar share gainers, respectively.

The Wine & Spirits business reported a net sales decline of 47%, reflecting the impact of the 2025 Wine Divestitures, but delivered organic net sales and depletions growth of 8% and 6.6%, respectively, outperforming the total wine and spirits category in both dollar sales and volume sales in Circana U.S. tracked channels. Constellation's wine portfolio was the No. 2 dollar share gainer in the total wine category. Constellation didn't provide a product breakout similar to that in its beer business.

“Our portfolio continues to benefit from the strength of our brands, disciplined commercial execution, and our ability to connect with consumers across a broad range of occasions," said Nicholas Fink, President/CEO. "Despite a discerning and value-conscious consumer environment, we grew Enterprise organic net sales and gained share during the first quarter of fiscal 2027. As we continue to deepen our understanding of evolving consumer needs and invest behind our strategic priorities, we believe that we remain well positioned to drive sustainable organic growth while maintaining healthy investment in our brands.”

Garth Hankinson, Executive Vice President & CFO, said: “Our strong free cash flow generation enabled us to execute against our capital allocation priorities, including returning over $400 million to shareholders through share repurchases and dividends, all while holding to our target comparable net leverage ratio of ~3.0x and continuing to progress on the build out of our third brewery at Veracruz. We are confident in our ability to generate strong cash flow, allowing us to balance investments for growth with shareholder returns, while remaining committed to our disciplined and balanced capital allocation approach."