(Reuters) - Constellation Brands Inc (STZ.N) on Friday reported a lower-than-expected quarterly profit due to higher marketing and transportation costs, leading the Corona beer maker to maintain its full-year earnings forecast that missed estimates.
The company’s shares fell 5 percent in premarket trading.
Constellation said higher freight costs, rising dollar and increased marketing hit first-quarter operating margin of its beer business by 230 basis points at 37.8 percent.
The company said marketing expenses rose 1.1 percent as it had to make upfront investments to promote its new beers, Corona Premier and Corona Familiar.
The maker of Robert Mondavi wine and Svedka vodka reaffirmed its full-year earnings forecast of $9.40 to $9.70 per share, well under analysts’ estimate of $9.73, according to Thomson Reuters I/B/E/S.
Net income attributable to the company rose to $743.8 million, or $3.77 per Class A share, in the first quarter ended May 31, from $398.5 million, or $1.98 per share, a year earlier.
Excluding items, the company earned $2.20 per share, missing analysts’ average estimate of $2.43.
Net sales rose 6 percent to $2.05 billion.
Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel