Wine and spirits company Constellation Brands Inc. said on Thursday that quarterly profit fell sharply, hurt by a plan to cut the amount of wine it ships to U.S. distributors and lower results from its British business.
The owner of Robert Mondavi, Vendage and Ravenswood wines posted net income of $29.8 million, or 13 cents per share, for the fiscal first quarter that ended May 31, compared with $85.5 million, or 36 cents per share, a year ago.
Excluding the impact of realigning its business and the inventory actions, Constellation said it earned 21 cents per share.
Quarterly net sales were $901.2 million, down from $1.16 billion a year ago, hurt by the impact of a change in the way the company accounts for sales from its Crown Imports and Matthew Clark joint ventures.
Constellation has been struggling with its business in Britain, as an oversupply of grapes from Australia has flooded the market with inexpensive wine, hurting prices. To lessen the blow, the company has said it is looking to other so-called New World wine markets, including the Unites States and New Zealand.
The company affirmed its full-year outlook for earnings per share in the range of $1.30 to $1.40, excluding items.