Constellation Brands Ltd
(ASX:CBR) has posted a 9 per cent drop in earnings for the second quarter but says the company’s performance is improving.
Constellation Brands Australian wine brands include Hardy’s and Banrock Station.
The wine company reported net profit of US$109 million for the three months to August compared to US$120 million last year.
Net sales fell 2 per cent to US$863 million for the quarter, due primarily to the sale of its UK cider business.
However, sales in Australia and Europe managed to increase around 4 per cent for the quarter on an organic constant currency basis compared to the second quarter of last year.
President and CEO, Rob Sands, says during the quarter the company experienced improving US wine depletion trends and retail execution despite an uncertain consumer and competitive environment.
Constellation Brands booked a profit of $111.58 million for the year to February 28, 2010.
