VICTOR, N.Y. — Alcohol giant Constellation Brands Inc.’s latest quarterly results were weighed down by millions in losses and a writedown in connection with its significant stake in Canadian cannabis producer Canopy Growth Corp., but it still beat market expectations.
The U.S.-based producer of Corona beer reported a loss per share of US$2.77 or earnings of US$2.72 on an adjusted basis for what was the second quarter of its 2020 financial year, surpassing the US$2.60 in earnings expected by analysts, according to the financial markets data firm Refinitiv.
Constellation, which is Canopy’s largest shareholder, said that excluding the pot producer’s equity losses it earned US$2.91 per share on a comparable basis.
Constellation also said it recognized a total loss of US$484.4 million in the quarter as its share of Canopy Growth’s equity losses and related activities, or a loss of US$54.7 million on a comparable basis.
It also recognized a US$839-million decrease in the fair value of its Canopy investments during the quarter ended Aug. 31, sending Constellation’s shares in New York down roughly six per cent to US$194.24 in midday trading.
Constellation’s results come after Canopy ousted its co-founder and co-chief executive Bruce Linton in July following comments by the Modelo beer maker in June that it was “not pleased” with the pot producer’s latest financial results.
This report by The Canadian Press was first published Oct. 3, 2019.
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