Constellation Brands, Inc. (NYSE:STZ) stock rose 1.41% (As on April 7, 7:9:32 PM UTC-4, Source: Google Finance) after the company reported mixed quarterly results. STZ forecast full-year profit above Wall Street estimates on Thursday, benefiting from price increases aimed at combating elevated costs and strong demand for its high-end beer brands. Like other spirit makers, the company has been raising prices of its beer, wine and spirits to shield its margins from soaring costs of packaging, raw materials, logistics and labor. Even as inflation impacted spending habits, Constellation said its consumers stuck to its premium beer brands including Modelo Especial and Corona Extra. Demand for its premium and fine wine has also remained robust. Analysts have said that the company’s beer segment looks set for a strong fiscal 2024 with price hikes and new product launches, including Modelo Oro beer in the United States despite an uncertain consumer environment.

STZ in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.98, beating the analysts’ estimates for the adjusted earnings per share of $1.82. The company had reported 5 percent fall in the adjusted revenue to $2 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $2.02 billion, according to estimates compiled by Refinitiv. Beer revenue fell 2% annually to $1.54 billion as shipments declined 5.4%. The segment’s depletion rate, or the pace at which units were sold to end consumers, came in at 6.3%, driven by the Modelo Especial and Corona Extra brands. Sales of wine and spirits plunged 14% to $462.2 million as shipments tumbled 22%. The division’s depletion rate was negative 4.9%. Operating margin shrank 510 basis points year on year for the beer division due to higher costs, while wine and spirits reported a 500-basis-point improvement.

Constellation expected full-year adjusted profit per share to be between $11.70 and $12.00, compared with analysts’ average estimate of $11.68 per share, according to Refinitiv data. Beer sales growth is pegged at 7% to 9% and wine and spirits organic revenue is set to be down 0.5% to up 0.5%. The beer division’s net sales rose 11% in fiscal 2023 while the other segment’s organic sales fell 2% annually.

Additionally, the company raised its quarterly dividend by 11% to $0.89 per class A common share, payable May 18 to stockholders of record on May 4.