Constellation Brands Inc. (STZ) reports earnings

The report was filed on January 10, 2025

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Constellation Brands Inc. (STZ-0.48%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.

The filing reports net sales of $8,044.5 million for the nine months ended November 30, 2024, an increase from $7,822.6 million in the same period the previous year. The increase was driven by growth in the Beer segment, offset by a decline in the Wine and Spirits segment.

Operating income for the nine months was $505.2 million, down from $2,540.3 million in the previous year, primarily due to a $2,250.0 million goodwill impairment in the Wine and Spirits segment.

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Net income attributable to Constellation Brands was $293.9 million, a decrease from $1,335.0 million in the previous year. The decline was largely due to the goodwill impairment and a decrease in Wine and Spirits sales.

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The Beer segment reported net sales of $6,835.4 million, up from $6,459.8 million, driven by shipment volume growth and favorable pricing. The Wine and Spirits segment reported net sales of $1,209.1 million, down from $1,362.8 million, due to a decrease in branded shipment volume.

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Constellation Brands completed the sale of the SVEDKA brand and related assets for $409.2 million, with an expected gain of $250 million to $275 million to be recognized in the fiscal year ending February 28, 2025.

The company reported cash and cash equivalents of $73.7 million as of November 30, 2024, compared to $152.4 million as of February 29, 2024. Net cash provided by operating activities was $2,557.5 million, up from $2,346.8 million in the previous year.

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Constellation Brands' total debt outstanding as of November 30, 2024, was $11,579.1 million, a decrease from $11,879.3 million as of February 29, 2024.

The report also details various financial agreements, including a credit agreement with Bank of America, N.A., and outlines the company's ongoing strategic focus on consumer-led premiumization trends and operational efficiency.

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The company declared a quarterly cash dividend of $1.01 per share of Class A Stock, payable on February 21, 2025.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Constellation Brands Inc. quarterly 10-Q report dated January 10, 2025. To report an error, please email earnings@qz.com.