Constellation Brands : CEO/CFO Commentary FY 2025
STZ
FULL FISCAL YEAR & FOURTH QUARTER 2025 FINANCIAL RESULTS
AND FISCAL YEAR 2026 TO FISCAL YEAR 2028 OUTLOOK
CEO & CFO COMMENTARY
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CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
Use Of Non-GAAP Financial Measures, Conference Call Information, and Location of Defined Terms and Other Disclaimers
Please view this commentary in conjunction with our earnings release and presentation for our fiscal year and fourth quarter 2025 financial results and fiscal year 2026 to fiscal year 2028 outlook that can be found on our investor relations website at ir.cbrands.com. This commentary and our live conference call may contain non-GAAP financial measures. These and other non- GAAP financial measures, the purposes for which management uses them, why management believes they are useful to investors, and reconciliations to the most directly comparable GAAP financial measures may be found at ir.cbrands.com under the Financial Info/Financial History (Non-GAAP) section. All references to profit measures and earnings per share on a comparable basis exclude items that affect comparability. Non-GAAP financial measures are also referred to as being presented on a "comparable," "adjusted," or "organic" basis.
A live conference call for analysts to discuss our financial results, operating performance, strategic business initiatives, and outlook for the future with President and Chief Executive Officer, Bill Newlands, and Executive Vice President and Chief Financial Officer, Garth Hankinson, which will be hosted at 10:30 a.m. ET on Thursday, April 10, 2025.
The conference call can be accessed by dialing +1-877-407-9121 and entering conference identification number 13752140, beginning at 10:20 a.m. ET. A live, listen-only webcast of the conference call will be available on our investor relations website at ir.cbrands.com under the News & Events section.
For anyone unable to participate in the conference call, a replay will be available on our investor relations website.
A list of defined terms used within can be found under the "Defined Terms" heading below, and a list of other disclaimers can be found following the Defined Terms.
Forward-Looking Statements
This commentary, including the oral statements made in the live conference call in connection herewith, contain forward-looking statements that are based on certain assumptions, estimates, expectations, plans, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future developments, as well as other factors management believes are appropriate in the circumstances. These forward-looking statements are subject to various 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, such forward-looking statements. When used in this commentary and the live conference call, words such as "anticipate," "intend," "expect," "plan," "continue," "estimate," "exceed," "may," "will," "project," "predict," "propose," "potential," "targeting," "exploring," "goal," "outlook," "forecast," "trend," "path," "scheduled," "implementing," "ongoing," "seek," "could," "might," "should," "believe," "vision," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Information provided in this commentary and the live conference call are necessarily summarized and may not contain all available material information.
2 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
All statements other than statements of historical fact set forth in this commentary and the live conference call may be forward-looking statements, including statements regarding or applicable to our business strategy and vision, the anticipated impact of the tariffs announced by the U.S. government on April 2, 2025 and the Canadian government on March 4, 2025, value proposition and opportunity, growth plans and drivers, operational and commercial execution initiatives, innovation, new products, tools, and capabilities, brand building, digital leadership and capabilities, including through our Digital Business Acceleration initiatives, future marketing strategies and spend, future focus areas, demographic and consumer projections and trends, future sales, space, partnership, distribution, and supply chain initiatives, our beer expansion, optimization, and/or construction activities, including anticipated scope, capacity, supply, costs, capital expenditures, and timeframes for completion, capital allocation priorities and commitments, future operations, financial position, net sales, costs, expenses, marketing investments, impairments, hedging programs, cost savings and efficiency initiatives, operating income, operating margins, leverage ratios, including target net leverage ratio, target dividend payout ratio, depreciation, equity in earnings, net interest expense, capital expenditures, tax rates, anticipated tax liabilities, operating cash flow, free cash flow, EPS, shares outstanding, non-controlling interests, and other financial metrics, expected volume, inventory, price, mix, and depletion trends, non-structural socioeconomic factors, consumer behaviors and demand, near-, medium-, and long-term financial models and targets, future acquisition, disposition, and investment activities, including the SVEDKA Divestiture and the 2025 Wine Divestitures Transaction and its expected timetable, our environmental responsibility, CSR, and human capital approach, initiatives, targets, objectives, ambitions, and priorities, the manner, timing, and duration of our share repurchase program and source of funds for share repurchases, the amount and timing of future dividends, access to capital markets, liquidity and capital resources, value creation efforts, anticipated inflationary pressures, changing prices, and reductions in consumer discretionary income as well as other unfavorable global and regional economic conditions, geopolitical events, and military conflicts, and our responses thereto, 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 that could cause actual results to differ materially from those set forth in or implied by the Projections.
All Projections speak only as of the date of this commentary. 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 commentary. 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
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CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:
4 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
5 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
As usual, our CEO and CFO commentary will focus mainly on comparable results, starting at an enterprise level followed by business segment detail for fiscal 2025, and subsequently for the outlook and expectations for fiscals 2026 to 2028 in the same manner. Expectations for fiscal 2026 to 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.
Overarching Highlights
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, more specifically:
Fiscal 2025 Results
6 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
7 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
Beer Business
8 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
9 of 20
CONSTELLATION BRANDS
FY25 & Q4 FY25 FINANCIAL RESULTS AND FY26-FY28 OUTLOOK
CEO & CFO COMMENTARY
Wine and Spirits Business
10 of 20
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.