Constellation Brands Posts Earnings Beat Despite Sales Miss

Constellation Brands (NYSE:STZ) is a New York-based company that is engaged in the production, importing, marketing, and sale of beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company released its first quarter (Q1) fiscal 2025 findings. Its shares dripped 3.72% week-over-week and the stock was down marginally in after-hours trading after the market started to react to its recent results.

In Q1 FY2025, Constellation Brands reported net sales of $2.66 billion. This was up 6% compared to the prior year. Meanwhile, it delivered operating income growth of 23% to $942 million. Adjusted earnings before interest & taxes surged 193% to $1.02 billion, while diluted net income (loss) per share attributable to CBI was reported at a modest $4.78.

Beer was a highlight for Constellation Brands as it reported a shipment cost increase to $115 million – up from $107 million in the previous year. That was up 7.6% compared to the prior year. Meanwhile, net sales increased 8% year-over-year to $2.27 billion while operating income jumped 16% to $923 million.

Wine and spirits did not fare as well in Q2 FY2025. Overall shipments slipped 5.1% to $5.6 million and net sales dropped 7% year-over-year to $389 million. Operating income dropped 25% to $59.7 million.

Looking ahead, Constellation Brands is projecting enterprise net sales growth between 6-7%. The company also anticipates operating income growth between110-12 %. It expects free cash flow between $1.4 billion and $1.5 billion.

Source link

About The Author

Scroll to Top