Summary by Moomoo AI
Constellation Brands reported solid Q1 FY2025 results with net sales up 6% to $2.66B and operating income rising 23% to $942M. The Beer segment led growth with an 8% increase in net sales to $2.27B, driven by 7.6% higher shipment volumes and strong performance from Modelo Especial and Pacifico brands.The Wine and Spirits segment faced headwinds with net sales declining 7% to $389M, primarily due to challenging U.S. wholesale market conditions. Operating margin decreased 370 basis points to 15.3%. The company is implementing commercial and operational initiatives to improve performance.The company maintained its FY2025 comparable EPS guidance of $13.50-$13.80 and declared a quarterly dividend of $1.01 per Class A share. Operating cash flow increased 4% to $691M, while free cash flow declined 19% to $315M due to brewery capacity investments. The company expects operating cash flow of $2.8-$3.0B for FY2025.
