Constellation Brands reported a 2% increase in net beer sales to $2.28 billion for the first quarter of fiscal 2027, supported by $40.7 million in shipment growth and $17.6 million in pricing gains. Beer shipments rose by 1.8%, while depletions slightly decreased by 0.3%. However, the Wine and Spirits segment saw a significant 47% drop in net sales to $149.2 million, largely due to previous divestitures.
Gross profit as a percentage of net sales increased to 54.3%, up from 50.4% year-over-year, with comparable operating income rising to $834.2 million. Despite improved gross margins, tariffs on aluminum imports amounted to $13.0 million, and marketing expenses as a percentage of beer net sales are expected to exceed 10% for the upcoming quarters to support major sports marketing initiatives.
Net cash from operating activities stood at $661.8 million for the quarter, and the company repurchased 1.5 million shares for $223.8 million. For the remainder of fiscal 2027, Constellation anticipates organic net sales growth between -1% to 1%, reflecting ongoing consumer demand challenges.
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