OTTAWA (dpa-AFX) - Constellation Brands, Inc. (STZ), a beverage company, on Tuesday reported a net profit for the second quarter, helped by a decline in expenses and zero goodwill impairment. However, the firm posted a decline in sales. In addition, the beverage maker has revised down its full-year reported profit guidance.
For the three-month period to August 31, Constellation posted a net income of $466 million, or $2.65 per share, compared with a loss of $1.199 billion, or $6.59 per share, in the same period last year. Excluding items, earnings were $637.8 million, or $3.63 per share, less than last year's $787.6 million, or $4.32 per share.
Pre-tax income stood at $782.9 million as against a loss of $1.334 billion a year ago. Operating income was $874 million, compared with a loss of $1.229 billion in 2024.
Goodwill impairment was $0.00 million, compared with negative $2.250 billion last year. The cost of products sold moved down to $1.171 billion from the prior year's $1.407 billion.
Net sales slipped to $2.481 billion from $2.918 billion in the previous year. The company registered sales of $2.653 billion, less than the $3.139 billion a year ago.
Looking ahead, for fiscal 2026, Constellation now expects a reported profit of $9.86 to $10.16 per share, compared with the prior outlook of $10.77 to $11.07 per share. For fiscal 2025, the company had posted a reported loss of $0.45 per share.
Constellation, however, still anticipates annual comparable earnings of $11.30 to $11.60 per share. For fiscal 2025, the beverage maker had recorded comparable income of $13.78 per share.
STZ was up by 2.46% at $142.21 on the New York Stock Exchange.
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