Constellation Brands raised its annual profit target on Thursday after topping sales expectations for the second quarter, riding on higher prices and strong demand for its beers and spirits.

Constellation, like peer Brown-Forman, has benefited from increasing prices in a bid to offset steeper input costs.

Alcoholic beverages have also managed to retain demand despite a broader consumer slowdown in the U.S. due to sticky inflation.

The company now expects fiscal 2024 comparable earnings per share between $12.00 and $12.20, as against its previous forecast of profit between $11.70 and $12.00 per share.

Constellation's quarterly sales rose 7%, to $2.84 billion, compared with analysts' average estimate of $2.82 billion, as per IBES data from LSEG.

(Reporting by Juveria Tabassum; Editing by Pooja Desai)