- Constellation Brands reported a 13.8% increase in net sales to $1.54 billion for the fourth fiscal quarter of 2016. Annual revenue for fiscal 2016 jumped 9% to $6.55 billion, including an 8% increase in organic net sales on a constant currency basis and benefits from the company's acquisitions of Ballast Point and Meiomi, offset in part by currency headwinds.
- Comparable quarterly net income attributable to Constellation saw a 17% boost to $243 million, which included a 29% increase in beer operating profit thanks to organic volume growth, favorable pricing, and lower cost of product sold, partially offset by increased marketing expenses. For the fiscal year, comparable net income attributable to Constellation increased by 24% to $1.1 billion, including a 24% increase in beer operating income.
- Constellation also announced its agreement to acquire The Prisoner Wine Company, a super-luxury portfolio of five wine brands that have posted annual volume growth of 30% over the last three years. This further expands the luxury wine portfolio Constellation grew with its acquisition of Meiomi in August.
Constellation has kept busy in recent years while building its beer portfolio to be a top U.S. beer industry contender. Its $1 billion Ballast Point acquisition was the fastest-rising craft brewer on the Brewers Association's list of the top 50 U.S. craft brewers for 2015, released this week.
Earlier this year, Constellation also announced expansion of its brewery in Nava, Mexico and the construction of a new brewery in Mexicali, Mexico. The company is capitalizing on the fast, steady growth of its Mexican beer portfolio, including Corona and other Grupo Modelo brands it acquired from AB InBev in 2013.
Constellation's revenue and profit growth stands in contrast to some of its competitors. Anheuser-Busch InBev posted revenue and profit declines last quarter as its domestic beer portfolio took a hit in the U.S. market.
Earlier this month, AB InBev announced an internal goal of $100 billion in revenue by 2020. AB InBev's 2015 fiscal year revenue was $43.6 billion, while its potential acquisition SABMiller's was $22.1 billion, for a combined total of $65.7 billion, excluding divestitures. That acquisition has been stalled by South African regulators, who requested their fourth 15-day extension for their investigation of the proposed merger.
Constellation also announced a potential initial public offering for a portion of its Canadian wine business.