Constellation Brands : Earnings Release and Financial Tables FY 2025
STZ
Exhibit 99.1
Delivers Enterprise Net Sales Growth in Softer Consumer Demand Environment and Drives Significant Operating Leverage Through Cost Savings and Efficiency Initiatives
Exceeds Operating and Free Cash Flow Outlook and Returns Nearly $1.9 Billion to Shareholders
in Fiscal 2025, Including Over $1.1 Billion in Share Repurchases
Announces Separately Divestiture of Remaining Mainstream Wine Brands, And Restructuring Actions
Expected to Generate Over $200 Million in Net Annualized Cost Savings By Fiscal 2028
Issues Fiscal 2026 Outlook and Provides Updated Outlook for Fiscal 2027 and Fiscal 2028,
Including a New 3-Year $4 Billion Share Repurchase Authorization (1)
Diluted Net Income
Adjusted Earnings
(Loss) per Share
Net
Operating
Net Income (Loss)
Before Interest &
Attributable to CBI
Sales
Income (Loss)
Attributable to CBI
Taxes
(EPS)
Fiscal Year 2025 Financial Highlights (2)
| In millions, except per share data
Reported
$10,209
$355
$(81)
$329
$(0.45)
% Change
2%
(89%)
(105%)
(88%)
(105%)
Comparable
$10,209
$3,475
$2,507
$3,498
$13.78
% Change
2%
7%
10%
7%
11%
Fourth Quarter Fiscal Year 2025 Financial Highlights (2)
Reported
$2,164
$(150)
$(375)
$(242)
$(2.09)
1%
(124%)
(196%)
(141%)
(198%)
$2,164
$659
$474
$656
$2.63
1%
6%
13%
4%
14%
HIGHLIGHTS
"Despite a softer consumer demand backdrop in fiscal 2025, we delivered another year of Enterprise net sales growth and substantial comparable operating margin improvement, as well as double-digit comparable EPS growth. These results allowed us to once again be recognized as the #1 growth leader among large CPG companies in calendar year 2024 in Circana's annual U.S. CPG Growth Leaders ranking. Looking ahead, in a tough socioeconomic environment we are taking decisive actions designed to continue to support our industry-leading Beer Business, reset our cost base, and redefine our portfolio. We remain focused on: driving distribution gains, disciplined innovation, and increased marketing investments in our Beer Business; enhancing efficiency across our enterprise; and repositioning our Wine and Spirits Business to be entirely in higher growth, higher-end segments." - Bill Newlands, President and Chief Executive Officer
"In fiscal 2025, our strong cash flow generation enabled us to continue to deliver against our disciplined capital allocation priorities. We maintained our comparable net leverage ratio under 3.0x, returned nearly $1.9 billion to shareholders through share repurchases and dividends, and continued to invest in the business mainly through our Beer brewery expansion. We remain committed to these balanced priorities as we deploy the approximately $9 billion of operating cash flow we expect to generate between fiscal 2026 and fiscal 2028, including through the use of our new total $4 billion share repurchase authorization aligned with that period." - Garth Hankinson, Executive Vice President and Chief Financial Officer
Constellation Brands, Inc. FY 2025 Earnings Release
#WORTHREACHINGFOR I 1
beer
Shipments
Years Ended | In millions; branded product, 24-pack, 12-ounce case equivalents
February 28, 2025
431.8
February 29, 2024
418.1
% Change
3.3%
Three Months Ended
Depletions
2.9%
Operating
Net Sales
Income (Loss)
$3,394.4
$8,539.8
$8,162.6
$3,094.4
5%
10%
February 28, 2025
85.4
February 29, 2024
87.0
% Change
(1.8%)
(1.0%)
$1,704.4$623.8
$1,702.8$585.4
0%7%
FISCAL YEAR 2025 HIGHLIGHTS
FOURTH QUARTER FISCAL 2025 HIGHLIGHTS
BEER BUSINESS CAPITAL EXPANSION
The company had approximately 48 million hectoliters of capacity across its existing facilities in Mexico at the end of fiscal 2025. From fiscal 2026 to fiscal 2028, the company expects approximately $2 billion of capital expenditures primarily to continue the modular development of its third brewery site at Veracruz and other additions at existing facilities in Mexico. By the end of Fiscal 2028, we expect to increase our capacity in Mexico to approximately 55 million hectoliters to support the anticipated growth of our high-end beer brands.
wine and spirits
Organic
Depletions (2) (3)
Net Sales (4)
Organic
Operating
Shipments
Shipments (2) (3)
Net Sales (2)
Income (Loss)
(4)
Years Ended | In millions; branded product, 9-liter case equivalents
February 28, 2025
22.1
22.1
$1,668.9
$1,668.9
$325.1
February 29, 2024
23.8
23.2
$1,799.2
$1,776.6
$398.7
% Change
(7.1%)
(4.7%)
(9.3%)
(7%)
(6%)
(18%)
Three Months Ended
February 28, 2025
5.9
5.9
$459.8
$459.8
$99.7
February 29, 2024
5.7
5.1
$436.4
$413.8
$111.1
% Change
3.5%
15.7%
(2.4%)
5%
11%
(10%)
FISCAL YEAR 2025 HIGHLIGHTS
FOURTH QUARTER FISCAL 2025 HIGHLIGHTS
Constellation Brands, Inc. FY 2025 Earnings Release
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outlook
Enterprise growth (decline) assumptions and Wine and Spirits decline assumptions for fiscal 2026 exclude (i) $98 million of net sales and $35 million of gross profit less marketing for the March 1, 2024 to January 5, 2025, period that are no longer expected to be part of year- over-year results following the SVEDKA Divestiture and (ii) $613 million of net sales and $210 million of gross profit less marketing for the June 1, 2024 to February 28, 2025, period that are no longer expected to be part of year-over-year results following the 2025 Wine Divestitures Transaction (as defined below). Fiscal 2026 outlook and guidance assumptions reflect the anticipated impact of the tariffs announced by the U.S. government on April 2, 2025 and the Canadian government on March 4, 2025. The table sets forth management's current EPS expectations for fiscal 2026 compared to fiscal 2025 actual results.
Reported
Comparable
FY26 Estimate
FY25 Actual
FY26 Estimate
FY25 Actual
Fiscal Years Ending February 28
$12.33 - $12.63
$(0.45)
$12.60 - $12.90
$13.78
Fiscal 2026 Guidance Assumptions:
•Enterprise organic net sales growth (decline) of (2) - 1%
•Interest expense, net: approximately $385 million
•Tax rate: reported and comparable approximately 18% •Weighted average diluted shares outstanding:
approximately 176 million inclusive of share repurchases(4) •Operating cash flow: $2.7 - $2.8 billion
•Capital expenditures: approximately $1.2 billion, including approximately $1.0 billion targeted for Mexico beer operations activities
•Free cash flow: $1.5 - $1.6 billion
The table sets forth management's current expectations for fiscal 2027 and fiscal 2028 compared to the November 2023 Investor Day Presentation and subsequent updates provided following the conclusion of fiscal 2024. Expectations for fiscal 2027 and fiscal 2028 reflect the anticipated impact of the tariffs announced by the U.S. government on April 2, 2025 and the Canadian government on March 4, 2025.
Updated Outlook
Prior Medium Term Outlook
FY27 - FY28
Net Sales YoY
Enterprise
~+6% to 8%
~+2% to 4%
Beer
~+7% to 9%
~+2% to 4%
Growth Rates
Wine and Spirits
~+1% to 3%
Flat to +3%
Enterprise
~33% to 35%
~35% to 36%
Operating Margin
Beer
~39% to 40%
~39% to 40%
W&S
~25% to 26%
~22% to 24%
Equity In Earnings (Losses)
N/A
~$30M
Interest Expense, Net
$450M to $600M
FY27 $430M to $440M
FY28 $440M to $450M
Effective Tax Rate
~20% to 22%
FY27 ~20%
FY28 ~22%
Noncontrolling Interest
~$40M
~$55M
Diluted Shares Outstanding
~184M
FY27 ~171M
FY28 ~166M (5)
Diluted EPS YoY Growth Rates
+LDD%
FY27 +MSD% to LDD%
FY28 +LSD% to MSD%
Operating Cash Flow
FY24-FY28
+HSD% to LDD%, YoY Growth Rate
~$15B to $17B, Cumulative
Enterprise
FY24-FY28
FY27 ~(40%), YoY Decline Rate
~$5B, Cumulative
FY28 ~(35%), YoY Decline Rate
Capital Expenditures
Beer
~$4B, Cumulative
~$1B, Cumulative
W&S
~$0.8B, Cumulative
~$0.2B, Cumulative
Corporate
~$0.2B, Cumulative
Free Cash Flow
FY24-FY28
~+DD%, YoY Growth Rate
$10B to $13B, Cumulative
DD = double digit; HSD = high single digit; LDD = low double digit; LSD = low single digit; MSD = mid single digit; N/A = not applicable; YoY = year-over-year
Constellation Brands, Inc. FY 2025 Earnings Release
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QUARTERLY DIVIDEND
On April 9, 2025, Constellation's board of directors declared a quarterly cash dividend of $1.02 per share of Class A Common Stock payable on May 15, 2025, to stockholders of record as of the close of business on April 29, 2025.
ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It's worth our dedication, hard work, and calculated risks to anticipate market trends and deliver more for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what's next.
Every day, people reach for our high-end, iconic imported beer brands such as those in the Corona brand family like the flagship Corona Extra, Modelo Especial and the flavorful lineup of Modelo Cheladas, Pacifico, and Victoria; our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi Winery, Casa Noble Tequila, and High West Whiskey; and our premium wine brands such as Kim Crawford.
As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our ESG strategy is embedded into our business and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For.
To learn more, visit www.cbrands.comand follow us on X, Instagram, and LinkedIn.
MEDIA CONTACTS
INVESTOR RELATIONS CONTACTS
Amy Martin
585-678-7141
Joseph Suarez
773-551-4397
Carissa Guzski
315-525-7362
Snehal Shah
847-385-4940
David Paccapaniccia
585-282-7227
SUPPLEMENTAL INFORMATION
Reported basis ("reported") are derived from amounts as reported under generally accepted accounting principles in the U.S. Comparable basis ("comparable") are amounts which exclude items that affect comparability ("comparable adjustments"), as they are not reflective of core operations of the segments. The company's measure of segment profitability excludes comparable adjustments, which is consistent with the measure used by management to evaluate results. The company discusses various non-GAAP measures in this news release ("release"). Financial statements, as well as supplemental schedules and tables reconciling non-GAAP measures, together with definitions of these measures and the reasons management uses these measures, are included in this release.
Constellation Brands, Inc. FY 2025 Earnings Release
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FORWARD-LOOKING STATEMENTS
The statements made under the heading Outlook and all statements other than statements of historical fact set forth in this release, including statements regarding our business strategy, growth plans and focus areas, the anticipated impact of the tariffs announced by the U.S. government on April 2, 2025 and the Canadian government on March 4, 2025, cost savings, restructuring, and efficiency initiatives and anticipated benefits, competitive position, Beer Business capital expansion, future operations, financial position, expected net sales, expenses, operating income, operating margin, operating leverage, equity In earnings, interest expense, net, tax rates, non-controlling interests, shares outstanding, operating cash flow, capital expenditures, free cash flow, EPS, future payments of dividends, amount, manner, and timing of share repurchases under the share repurchase authorization, access to capital markets, liquidity and capital resources, the 2025 Wine Divestitures Transaction and the repositioning of our Wine and Spirits Business, and prospects, plans, and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements (collectively, "Projections") that involve risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those set forth in, or implied by, the Projections.
When used in this release, the words "anticipate," "believe," "expect," "intend," "outlook," "will," and similar expressions are intended to identify Projections, although not all Projections contain such identifying words. All Projections speak only as of the date of this release. We undertake no obligation to update or revise any Projections, whether as a result of new information, future events, or otherwise. The Projections are based on management's current estimates, expectations, plans, and timetables, and, unless otherwise noted, do not take into account the impact of any future acquisition, investment, merger, or other business combination, divestiture (including any associated amount of incremental contingent consideration payment paid or received) including the 2025 Wine Divestitures Transaction, cost savings, restructuring, or efficiency initiatives, tariff changes, or financing or share repurchases that may be completed after the issuance of this release. Although we believe that the estimates, expectations, plans, and timetables, reflected in the Projections are reasonable, we can give no assurance that such estimates, expectations, plans, and timetables, will prove to be correct. In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, the Projections contained in this release are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:
Constellation Brands, Inc. FY 2025 Earnings Release
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)
(unaudited)
February 28,
February 29,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
68.1
$
152.4
Accounts receivable
736.5
832.8
Inventories
1,437.2
2,078.3
Prepaid expenses and other
561.1
666.0
Assets held for sale
913.5
-
Total current assets
3,716.4
3,729.5
Property, plant, and equipment
7,409.8
8,055.2
Goodwill
5,126.8
7,980.3
Intangible assets
2,532.3
2,731.7
Deferred income taxes
1,805.3
2,055.0
Other assets
1,061.7
1,140.0
Total assets
$
21,652.3
$
25,691.7
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Short-term borrowings
$
806.7
$
241.4
Current maturities of long-term debt
1,402.0
956.8
Accounts payable
939.8
1,107.1
Other accrued expenses and liabilities
886.7
836.4
Total current liabilities
4,035.2
3,141.7
Long-term debt, less current maturities
9,289.0
10,681.1
Deferred income taxes and other liabilities
1,193.3
1,804.3
Total liabilities
14,517.5
15,627.1
CBI stockholders' equity
6,882.0
9,743.1
Noncontrolling interests
252.8
321.5
Total stockholders' equity
7,134.8
10,064.6
Total liabilities and stockholders' equity
$
21,652.3
$
25,691.7
Constellation Brands, Inc. FY 2025 Earnings Release
#WORTHREACHINGFOR I 6
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data)
(unaudited)
Three Months Ended
Years Ended
February 28,
February 29,
February 28,
February 29,
2025
2024
2025
2024
Sales
$
2,312.7
$
2,300.3
$
10,956.9
$
10,711.0
Excise taxes
(148.5)
(161.1)
(748.2)
(749.2)
Net sales
2,164.2
2,139.2
10,208.7
9,961.8
Cost of product sold
(1,049.5)
(1,100.0)
(4,894.1)
(4,944.3)
Gross profit
1,114.7
1,039.2
5,314.6
5,017.5
Selling, general, and administrative expenses
(505.3)
(411.0)
(1,950.0)
(1,832.7)
Goodwill and intangible assets impairment
(547.7)
-
(2,797.7)
-
Assets held for sale impairment
(478.0)
-
(478.0)
-
Gain (loss) on sale of business
266.0
1.2
266.0
(15.1)
Operating income (loss)
(150.3)
629.4
354.9
3,169.7
Income (loss) from unconsolidated investments
(92.1)
(34.4)
(26.3)
(511.8)
Interest expense, net
(100.2)
(102.4)
(411.4)
(436.1)
Income (loss) before income taxes
(342.6)
492.6
(82.8)
2,221.8
(Provision for) benefit from income taxes
(28.0)
(88.2)
51.7
(456.6)
Net income (loss)
(370.6)
404.4
(31.1)
1,765.2
Net (income) loss attributable to noncontrolling interests
(4.7)
(12.0)
(50.3)
(37.8)
Net income (loss) attributable to CBI
$
(375.3)
$
392.4
$
(81.4)
$
1,727.4
Class A Common Stock:
Net income (loss) per common share attributable to CBI -
basic
$
(2.09)
$
2.15
$
(0.45)
$
9.42
Net income (loss) per common share attributable to CBI -
diluted
$
(2.09)
$
2.14
$
(0.45)
$
9.39
Weighted average common shares outstanding - basic
179.913
182.916
181.476
183.307
Weighted average common shares outstanding - diluted
179.913
183.561
181.476
183.959
Cash dividends declared per common share
$
1.01
$
0.89
$
4.04
$
3.56
Constellation Brands, Inc. FY 2025 Earnings Release
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)
(unaudited)
Years Ended
February 28,
February 29,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)
$
(31.1)
$
1,765.2
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities:
Unrealized net (gain) loss on securities measured at fair value
47.9
85.4
Deferred tax provision (benefit)
(210.3)
147.9
Depreciation
445.7
427.9
Stock-based compensation
72.2
63.6
Equity in (earnings) losses of equity method investees and related activities, net of
distributed earnings
(5.4)
321.2
Noncash lease expense
112.4
91.3
Amortization of debt issuance costs and loss on extinguishment of debt
10.4
11.7
Equity method investments impairment
8.7
136.1
Assets held for sale impairment
478.0
-
(Gain) loss on sale of business
(266.0)
15.1
Gain (loss) on settlement of pre-issuance hedge contracts
-
1.9
Net gain in connection with Canopy exchangeable shares
(7.2)
-
Goodwill and intangible assets impairment
2,797.7
-
Change in operating assets and liabilities, net of effects from purchase and sale of
business:
Accounts receivable
90.3
73.2
Inventories
(152.2)
(182.3)
Prepaid expenses and other current assets
(89.4)
(76.5)
Accounts payable
101.5
24.7
Deferred revenue
(35.5)
(11.0)
Other accrued expenses and liabilities
(48.9)
(115.9)
Other
(166.6)
0.5
Total adjustments
3,183.3
1,014.8
Net cash provided by (used in) operating activities
3,152.2
2,780.0
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment
(1,214.1)
(1,269.1)
Purchase of business, net of cash acquired
(158.7)
(7.5)
Investments in equity method investees and securities
(35.0)
(34.6)
Proceeds from sale of assets
35.5
21.9
Proceeds from sale of business
409.2
5.4
Other investing activities
(11.7)
(2.0)
Net cash provided by (used in) investing activities
(974.8)
(1,285.9)
Constellation Brands, Inc. FY 2025 Earnings Release
#WORTHREACHINGFOR I 8
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)
(unaudited)
Years Ended
February 28,
February 29,
2025
2024
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt
-
1,144.4
Principal payments of long-term debt
(957.0)
(809.7)
Net proceeds from (repayments of) short-term borrowings
565.3
(923.9)
Dividends paid
(731.8)
(653.8)
Purchase of treasury stock
(1,123.8)
(249.7)
Proceeds from shares issued under equity compensation plans
73.8
104.5
Payments of minimum tax withholdings on stock-based payment awards
(13.8)
(11.2)
Payments of debt issuance, debt extinguishment, and other financing costs
(0.1)
(7.7)
Distributions to noncontrolling interests
(57.5)
(52.6)
Payment of contingent consideration
(0.7)
(14.9)
Purchase of noncontrolling interest
(16.2)
-
Net cash provided by (used in) financing activities
(2,261.8)
(1,474.6)
Effect of exchange rate changes on cash and cash equivalents
0.1
(0.6)
Net increase (decrease) in cash and cash equivalents
(84.3)
18.9
Cash and cash equivalents, beginning of year
152.4
133.5
Cash and cash equivalents, end of year
$
68.1
$
152.4
Constellation Brands, Inc. FY 2025 Earnings Release
#WORTHREACHINGFOR I 9
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF REPORTED AND ORGANIC NET SALES
(in millions) (unaudited)
For periods of acquisition, we define organic net sales as current period reported net sales less net sales of products of acquired businesses reported for the current period, as appropriate. For periods of divestiture, we define organic net sales as prior period reported net sales less net sales of products of divested businesses reported for the prior period, as appropriate. We provide organic net sales because management uses this information in monitoring and evaluating the underlying business trends of our core operations. Wine and Spirits net sales are provided by channel and market categories as management uses this information to monitor this business. In addition, we believe this information provides investors, financial analysts covering the Company, rating agencies, and other external users ("our investors") valuable insight on underlying business trends and results and, in the case of Wine and Spirits, the underlying composition of segment net sales and results, in order to evaluate year-over-year financial performance.
The divestiture impacting the periods below consists of the sale of the SVEDKA brand and related assets (the "SVEDKA Divestiture") (sold January 6, 2025).
Three Months Ended
Years Ended
February 28,
February 29,
Percent
February 28,
February 29,
Percent
2025
2024
Change
2025
2024
Change
Consolidated net sales
$
2,164.2
$
2,139.2
1%
$
10,208.7
$
9,961.8
2%
SVEDKA Divestiture adjustment (1)
-
(22.6)
-
(22.6)
Consolidated organic net sales
$
2,164.2
$
2,116.6
2%
$
10,208.7
$
9,939.2
3%
Beer net sales
$
1,704.4
$
1,702.8
0%
$
8,539.8
$
8,162.6
5%
Wine and Spirits net sales (2)
$
459.8
$
436.4
5%
$
1,668.9
$
1,799.2
(7%)
SVEDKA Divestiture adjustment (1)
-
(22.6)
-
(22.6)
Wine and Spirits organic net sales
$
459.8
$
413.8
11%
$
1,668.9
$
1,776.6
(6%)
Three Months Ended
Years Ended
February 28,
February 29,
Percent
February 28,
February 29,
Percent
2025
2024
Change
2025
2024
Change
U.S. Wholesale (i)
$
378.0
$
350.2
8%
$
1,346.2
$
1,458.8
(8%)
International (i)
45.8
41.8
10%
182.1
177.7
2%
DTC
23.2
21.6
7%
90.1
84.1
7%
Other
12.8
22.8
(44%)
50.5
78.6
(36%)
Wine and Spirits net sales
$
459.8
$
436.4
5%
$
1,668.9
$
1,799.2
(7%)
Constellation Brands, Inc. FY 2025 Earnings Release
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Disclaimer
Constellation Brands Inc. published this content on April 09, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 09, 2025 at 20:38 UTC.