E-Malt.com News article: 2467

Australia, Sydney: Constellation Brands has announced a record full year net profit figure of $US220 million for the year ending February 29, 2004, up eight percent over 2002, Asia Pulse announced on April 8. The result was driven by strong sales across all categories, the company said. Diluted earnings per share for fiscal 2005 are expected to be between $2.39-$2.49 versus $2.06 for fiscal 2004, or $2.49 on a comparable basis incorporating the April 2003 acquisition of Australia's Hardy Wines.

"In fiscal 2005 we are focusing investment behind our brands, particularly imported beer, Australian wine and premium California wine to drive long term growth in sales and earnings," group chairman and chief executive Richard Sands said. "We are well poised to fully exploit our strengths in product breadth and organisational scale to continue to deliver profitable growth."

Net income for the group increased eight percent to $US220 million and reported diluted earnings per share declined six percent to $2.06, a company statement said. Fiscal 2004 reported results include restructuring and related charges and net unusual costs of $US46 million, while fiscal 2003 reported results were positively impacted by $11 million after tax. Net income on a comparable basis increased 39 percent to $US267 million and comparable diluted earnings per share increased 20 percent to reach a record $2.49 per share, it said. Net sales increased 30 percent for fiscal 2004 to $US3.55 billion and 35 percent for the fourth quarter to $US881 million.

"The increase in net sales for both periods was driven primarily by the addition of wine sales from the Hardy acquisition and strong sales from imported beer, premium California wine and the UK wholesale business," the statement said. "Currency contributed three percent of the increase for fiscal 2004 and four percent of the increase for the quarter."

Pro forma net sales for the year, which include $US478 million of Hardy sales for the same prior year eleven month period, increased 11 percent, including a positive four percent impact from currency. For the quarter, including $US113 million of Hardy sales in the prior year period, pro forma net sales increased 15 percent, including a positive six percent impact from currency.


09 April, 2004