Constellation Brands Updates Fiscal 2025 Outlook with Reduced Growth Expectations

In a recent 8-K SEC filing, Constellation Brands (NYSE:STZ) shared details about its ongoing financial performance and strategic decisions. The beer business of Constellation Brands has showcased consistent volume growth, disciplined pricing actions, and additional cost savings. Despite facing challenges like subdued consumer spending, the beer business achieved its 59th consecutive quarter of depletion volume growth, outperforming industry averages.

In the beer segment, there was a notable 3.2% increase in depletions, driven by growth in brands like Modelo Especial and Pacifico. The Beer Business remains a leader in the industry, with Corona Extra and Pacifico showing substantial gains in dollar sales. Operating margin slightly decreased due to higher marketing spend and depreciation expenses.

However, the Wine and Spirits segment reported a decline in net sales driven by reduced shipment volumes, especially affecting lower-priced segments. The divestiture of SVEDKA reflects Constellation Brands’ focus on higher-growth and higher-margin brands, with stronger performance seen in craft spirits brands like Mi CAMPO.

Looking ahead, Constellation Brands has updated its fiscal 2025 outlook. The reported EPS outlook has been revised to $3.90 – $4.30, while the comparable EPS outlook stands at $13.40 – $13.80. Operating cash flow targets have been increased to $2.9 – $3.1 billion and free cash flow projections to $1.6 – $1.8 billion for fiscal 2025.

Overall, Constellation Brands continues to navigate challenges in the market with a balanced approach to capital allocation and strategic investments. The company’s commitment to delivering value for shareholders while adapting to changing consumer behaviors remains a key focus as it moves forward in the fiscal year.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Constellation Brands’s 8K filing here.

About Constellation Brands

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.