第99.1展示文本
啤酒業務實現了穩健的中個位數淨銷售增長，並保持營業利潤率擴張的勢頭，營業收入增長兩位數
公司繼續領先於消費品行業板塊的美元銷售增長，並推進資本分配優先事項，在實現淨槓桿比率目標的同時，通過股票回購向股東返還約2.5億美元
| 淨利 銷售 | 操作 收益（損失） | 淨利潤（損失） 歸屬於CBI | 調整後的利潤 before 利息和稅前 | 調整後的淨收入 每股收益（虧損） 歸屬於CBI 每股收益(EPS) | |||||||||||||
第二季度 2025財政年度財務亮點 (1) | 以百萬爲單位，除每股數據外 | |||||||||||||||||
| 報告 | $2,919 | $(1,229) | $(1,199) | $(1,231) | $(6.59) | ||||||||||||
| 百分比變動 | 3% | 未出現數據 | 未出現數據 | 未出現數據 | 未出現數據 | ||||||||||||
| 可比 | $2,919 | $1,090 | $788 | $1,093 | $4.32 | ||||||||||||
| 百分比變動 | 3% | 13% | 13% | 12% | 14% | ||||||||||||
亮點
•自由現金流 報告每股收益 爲$(6.59)，包括紅酒和烈酒 業務中的非現金商譽減值損失$22.5億 可比每股收益 爲$4.32
•啤酒業務美元銷售額增長超過了整體飲料行業和圈內追蹤渠道中的綜合飲料酒類類別；在 2025 財年第三季度推出的嚴謹的運營效率和成本管理舉措使得額外的營銷投資成爲可能 並使得總銷售額增長率超過了整體飲料 行業和圈追蹤的飲料酒類品類；嚴格的運營效率和成本管理舉措使得 2025 財年第三季度推出的增量營銷投資成爲可能
•紅酒和烈酒業務 繼續推進預計推動連續的商業和運營行動 淨銷售額 和 經營收入改善 注6-義務和 contingencies 的基本報表備註（未經審計），包含在本報告的第I部分第1項中。Q3 和 2025財年第四季度
•生成截至今年日期的 經營現金流 的$1.9億，增加了15%，以及 自由現金流 的1200000000美元，增加12%
•更新 2025年財政年度的每股收益展望 爲 $4.05 - $4.25 並確認最近更新的 可比每股收益展望於 $13.60 - $13.80，包括到2024年8月回購的44900萬美元股票
•確認 2025財年經營現金流目標於 $2.8 - $3.0 億美元和頁面。自由現金流預測 的$1.4 - $15億
•宣佈每股1.01美元的A類普通股現金股息 每股$1.01的A類普通股現金股息
星座 品牌增長 超越 CPG板塊增長 1.3百分點 點 銷售額 |  | 啤酒業務 交付 3RD 最高 份額增長 在飲料行業 板塊中 美元銷售 |  | 手工烈酒 投資組合 取得了較高的成就 個位數 增長 美元銷售額， 表現超越 高端 烈酒領域 |  | ||||||||||||||||||
Circana，在截至2024年9月1日的12周的美國多門店+便利店總計。 | |||||||||||||||||||||||
 | 儘管當前的宏觀經濟背景壓制了對酒精飲料的需求，以及對包裝消費品更廣泛的需求，但我們在2025年財務季度Q2繼續交出強勁的業績。我們公司再次超過了整個包裝消費品行業的銷售額增長，我們的啤酒業務在其類別中仍然保持着第一的份額增長，並在更廣泛的飲料行業中保持着前三的份額增長。我們堅持不懈地專注於實現頂級增長並在市場取得勝利，同時專注於推動效率， |  | 我們實現了資本配置優先事項的重要里程碑，達到了我們的目標約3.0倍淨槓桿率，與同樣的優先事項保持一致。重要的是，與這些優先事項保持一致，我們還通過股份回購向股東額外返還了約25,000萬美元現金，同時繼續支付股息並推進我們的釀酒廠投資。我們也很高興在我們的啤酒業務中增加額外的營銷投資，因爲我們的成本節約和效率舉措 | |||||||||||
支持着另一個季度同比每股收益的兩位數增長，符合我們全年展望。" | 交付了超出我們最初預期的成果。總的來說，我們繼續取得進展，專注於我們的價值創造工作。 | |||||||||||||
| Bill Newlands | Garth Hankinson | |||||||||||||
總裁兼首席執行官 | 執行副總裁兼致富金融官員 | |||||||||||||
星座品牌公司2025財年第二季度盈利發佈 | #值得追求 I 1 | ||||
 | 啤酒 | ||||||||||||||||
| 發貨 | 耗盡 | 淨銷售額 | 正在運營 收入（虧損） | ||||||||||||||
已結束三個月 | 以百萬計；品牌商品，24 件裝，12 盎司錶殼等價物 | |||||||||||||||||
| 2024年8月31日 | 128.6 | $2,530.2 | $1,077.7 | ||||||||||||||
| 2023年8月31日 | 123.0 | $2,392.7 | $953.9 | ||||||||||||||
| % 變化 | 4.6% | 2.4% | 6% | 13% | |||||||||||||
•我們的 啤酒業務實現了6％的淨銷售額穩步增長 主要由 a 驅動 出貨量增長4.6％.
•耗盡量 有 增長 2.4% 包括減少一天銷售的影響。增長是由需求的持續增長推動的 特別模型 大約 5%, Pacifico 大約 23%，以及 這 Modelo Chelada 品牌大約 2%; 而 Corona Extra 拒絕 大約 3%.
•在 Circana 頻道中，我們的 美元銷售額 和 卷 增長速度超過了速度 這 啤酒總類別 分別上漲了5.3個和6.2個百分點， 高端細分市場 這兩項衡量標準均下降了3.8個百分點。我們的啤酒業務是 #1 美元股價上漲 對於 12th 連續一個季度 和 #1 成交量份額上漲 在美國啤酒總類別中，分別增加了1.1和1.0個百分點。
•此外，我們的 啤酒業務 有 股票增幅最大的15個品牌中有3個 在啤酒總類別中，如下所示：
◦特別模型 仍然是 #1 品牌份額增長者 和 #1 品牌 以美元計算的整個美國啤酒類別的銷售額；
◦科羅娜額外版 保持了其地位 前 5 名品牌 以美元計算的整個美國啤酒類別的銷售額以及 獲得的份額;
◦Pacifico 繼續快速增長並保持不變 #4 美元 股價上漲者 涵蓋整個美國啤酒類別；以及
◦Modelo Chelada 檸檬和鹽 是一個 美元總股價漲幅前15位 在美國啤酒市場。
•營業利潤率增加 270個點子至42.6％，這得益於持續的成本節約舉措、銷量增長推動的固定成本吸收、優惠的定價以及與2024財年第二季度自願召回小桶相關的成本增加，但部分被較高的營銷投資所抵消。
•這個 啤酒業務 繼續期待 淨銷售增長 的 6 - 8% 和 營業收入增長 的展望 11 - 12% 2025財年。
資本擴張
公司在2024財年末，在墨西哥現有設施中擁有大約4800萬升的產能。從2025財年到2028財年，公司預計將約30億美元的資本支出用於繼續在墨西哥現有設施和其韋拉克魯斯第三釀酒廠的模塊增加項目的開發。
 | 紅酒和烈酒 | ||||||||||||||||
| 發貨量 | 銷售量下降 | 淨銷售額 | 操作 收益（損失） | ||||||||||||||
| 截至三個月結束 | 以百萬計算；品牌產品，9升裝箱數量 | |||||||||||||||||
| 2024年8月31日 | 5.5 | $388.7 | $70.5 | ||||||||||||||
| 2023年8月31日 | 6.1 | $444.1 | $80.7 | ||||||||||||||
| 百分比變動 | (9.8%) | (17.6%) | (12%) | (13%) | |||||||||||||
亮點
•我們的紅酒和烈酒淨銷售額 下降了12% 受...驅動 a 出貨量下降了9.8%，因爲業務繼續面臨具有挑戰性的市場條件，主要是美國批發渠道在紅酒品類的大多數價位段
•儘管紅酒和主流烈酒的銷售量也受到市場條件的影響，我們 手工烈酒 組合取得了 耗竭增長16.6%1.3% 主要由增加驅動 Mi CAMPO16.6%23%和頁面。Nelson's Green Brier16.6%15%.
•營業利潤率 保持不變 相對穩定 爲產品結構變化和較低銷量所驅動，營業利潤率保持在18.1%，抵消了較低的其他銷售和較高的合同分銷商支付。
•本基金尋求於東歐地區註冊的主要權益關聯發行人的長期升值投資。紅酒和烈酒業務 繼續預期 淨銷售額 下跌16.6%4 - 6%和頁面。運營利潤 下跌於 16 - 18%，包括在2025財年解決更廣泛市場逆風所採取的商業和運營舉措。
星座品牌公司2025財年第二季度盈利發佈 | #值得追求 I 2 | ||||
展望 | ||||||||||||||||||||
該表列出了管理層對2025財務年度的每股收益預期，與2024財務年度實際結果進行了比較。 | ||||||||||||||||||||
| 報告 | 可比 | |||||||||||||||||||
2025財年預估 | 2024財年實際 | 2025財年預估 | 2024財年實際 | |||||||||||||||||
| 財政年度截至2月28/29日 | $4.05 - $4.25 | $9.39 | $13.60 - $13.80 | $12.38 | ||||||||||||||||
2025財政年度指導假設： | ||||||||||||||||||||
•企業：淨銷售增長4-6% ◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。啤酒：淨銷售增長6-8% ◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。紅酒和烈酒：淨銷售下降4-6% •企業：營業收入增長（下降）：報告爲(63)% - (62)%，可比爲8-9% ◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。啤酒：營業收入增長11-12% ◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。葡萄酒和烈酒：營業收入下降16-18% ◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。企業費用：2.6億美元 •利息費用，淨額：4.3億美元 | •稅率：報告約爲9% 大約相當於18.5% •加權平均攤薄股份: 約183百萬; 包括股份回購 •經營現金流: $2.8 - $30億 •資本支出: $1.4 - $15億，其中約$12億用於墨西哥啤酒業務活動 •自由現金流: $1.4 - $15億 | |||||||||||||||||||
季度股息
2024年10月1日，星座公司的董事會宣佈每股A類普通股季度現金股息爲$1.01，將於2024年11月21日支付給截至2024年11月5日收盤後持股的股東。
† 本新聞資訊發佈的副本，包括可能在電話會議中討論的附件和其他財務信息，將在我們的投資者關係網站上提供， ir.cbrands.com在電話會議召開前。
關於星座品牌 星座品牌（NYSE: STZ）是一家領先的國際啤酒、紅酒和烈酒生產和營銷商，在美國、墨西哥、新西蘭和意大利均設有業務。我們的使命是打造深受人們喜愛的品牌，因爲我們相信提升人際關係是值得追求的。這值得我們的全力以赴、辛勤工作和冒一點風險去預測市場趨勢，爲我們的消費者、股東、員工和行業提供更多。正是這種奉獻精神驅使我們成爲美國零售業增長最快的大型消費品公司之一，也激勵着我們追求創新。 每天，人們會選擇我們的高端標誌性進口啤酒品牌，如科羅娜品牌系列中的旗艦產品科羅娜啤酒 Extra、車模特啤酒及美味的車模特番茄啤酒、Pacifico和Victoria；我們的優質紅酒和精釀烈酒品牌，包括The Prisoner紅酒公司、Robert Mondavi 酒莊、家善天然酒、High West 威士忌；以及我們的優質紅酒品牌，如金克勞福特和美迪。 作爲一家農業企業，我們有着悠久的可持續和負責任的經營歷史。我們的ESG策略融入了我們的企業，我們的工作重點是成爲環境的良好管理者，推進社會公正，促進負責任的飲酒文化。這些承諾植根於我們對未來的追求，我們的目標是創造一個真正值得追求的未來。 了解更多信息，請訪問www.cbrands.com 並關注我們X, Instagram和 LinkedIn. | ||
| MEDIA CONTACTS | INVESTOR RELATIONS CONTACTS | ||||||||||||||||
| Amy Martin | 585-678-7141 | amy.martin@cbrands.com | Joseph Suarez | 773-551-4397 | joseph.suarez@cbrands.com | ||||||||||||
Carissa Guzski | 315-525-7362 | carissa.guzski@cbrands.com | Snehal Shah | 847-385-4940 | snehal.shah@cbrands.com | ||||||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 3 | ||||
SUPPLEMENTAL INFORMATION
Reported basis (“reported”) are derived from amounts as reported under generally accepted accounting principles in the U.S. Comparable basis (“comparable”) are amounts which exclude items that affect comparability (“comparable adjustments”), as they are not reflective of core operations of the segments. The company’s measure of segment profitability excludes comparable adjustments, which is consistent with the measure used by management to evaluate results. The company discusses various non-GAAP measures in this news release (“release”). Financial statements, as well as supplemental schedules and tables reconciling non-GAAP measures, together with definitions of these measures and the reasons management uses these measures, are included in this release.
FORWARD-LOOKING STATEMENTS
The statements made under the heading Outlook and all statements other than statements of historical fact set forth in this release, including statements regarding our business strategy, strategic vision, growth plans, operational and commercial execution initiatives, innovation, new products, future operations, financial position, expected net sales, expenses, hedging programs, marketing investments, cost savings and efficiency initiatives, operating income, capital expenditures, effective tax rates, anticipated tax liabilities, operating cash flow, and free cash flow, estimated diluted EPS and shares outstanding, expected volume, inventory, supply and demand levels, balance, and trends, macroeconomic headwinds, future payments of dividends, amount, manner, and timing of share repurchases under the share repurchase authorizations, access to capital markets, liquidity and capital resources, value creation efforts, 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.
When used in this release, the words “anticipate,” “expect,” “intend,” “will,“ and similar expressions are intended to identify Projections, although not all Projections contain such identifying words. All Projections speak only as of the date of this release. 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 expectations 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), restructuring or other strategic business realignment, or financing or share repurchase that may be completed after the issuance of this release. Although we believe that the expectations reflected in the Projections are reasonable, we can give no assurance that such expectations 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 are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:
•水、農產品和其他原材料、以及包裝材料的供應、生產和/或發貨困難可能會對我們供應客戶的能力造成不利影響;
•具有應對預期通貨膨脹壓力的能力，包括消費者可支配收入減少以及我們通過提高銷售價格來承擔上漲成本的能力；
•全球供應鏈中斷和限制、運輸挑戰（包括勞工罷工或其他勞工活動）、消費者行爲轉變、野火和極端天氣事件對供應、生產水平和成本的實際影響；
•依賴複雜信息系統和第三方全球網絡以及與網絡安全和人工智能相關的風險；
•與我們的國際業務相關的經濟和其他不確定性；
•對於我們的墨西哥啤酒品牌生產的有限設施依賴，包括啤酒業務擴張，優化和/或施工活動，範圍，能力，供應，成本（包括減值），資本支出和時間；
•對我們的釀酒廠、酒廠、其他生產設施或配送系統造成的運營中斷或災難性損失；
•軍工-半導體衝突、地緣政治緊張局勢及應對措施對通貨膨脹、供應鏈、大宗商品、能源和網絡安全概念的影響；
•氣候變化、ESG監管合規性、未達到排放標準、監護人責任，以及其他ESG目標、目標或雄心，以及我們ESG報告的時間變更;
•依賴批發商、大型零售商和政府機構；
•產品品質受疾病、害蟲、天氣和其他狀況的污染和惡化;
•傳染病爆發、大流行或其他大規模公共衛生危機及相關政府遏制措施；
•員工勞動活動可能會增加我們的成本。
•我們銷售的產品可能會出現下降，而我們又過於依賴墨西哥啤酒品牌的銷售;
•我們收購、出售、投資和新產品開發戰略和活動的影響;
•在運營和商業執行、成本節約以及效率改進方面取得成功；
•依賴於我們的商標和專有權利，包括未能保護我們的知識產權權利；
•對我們聲譽的潛在損害；
•我們行業板塊內的競爭以及人才的競爭；
•我們的負債和利率波動；
•我們的國際業務、全球和區域型經濟趨勢以及金融市場狀況，包括宏觀經濟逆風、地緣政治不確定性或其他政府規章制度；
•我們可能面臨集體訴訟或其他訴訟;
•潛在減值可能涉及到我們的無形資產，如商譽和商標，包括我們的紅酒資產以及未來可能出現的減值。
•稅法變化、我們有效稅率的波動，包括由於紅酒和烈酒商譽減值以及出售墨西卡利啤酒廠剩餘資產所產生的稅收影響，稅務崗位的會計覈算，稅收爭議的解決，會計準則的變化，選舉，聲明或政策，以及全球最低稅率的影響；
•關於任何股份回購的資金金額、時間和來源;
•未來股息的金額和時間;
•桑斯家族成員對我們A類普通股的所有權以及董事會提名權，以及我們修訂後的章程中的選擇論壇條款; 和
•其他在我們向證券交易委員會提交的文件中披露的因素和不確定性，包括截至2024年2月29日財年結束的年度報告Form 10-k，這些因素可能導致實際未來績效與我們當前預期大相徑庭。
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 4 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
| August 31, 2024 | February 29, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 64.6 | $ | 152.4 | |||||||
| Accounts receivable | 871.3 | 832.8 | |||||||||
| Inventories | 2,098.6 | 2,078.3 | |||||||||
| Prepaid expenses and other | 612.3 | 666.0 | |||||||||
| Total current assets | 3,646.8 | 3,729.5 | |||||||||
| Property, plant, and equipment | 7,898.8 | 8,055.2 | |||||||||
| Goodwill | 5,715.4 | 7,980.3 | |||||||||
| Intangible assets | 2,763.0 | 2,731.7 | |||||||||
| Deferred income taxes | 1,963.9 | 2,055.0 | |||||||||
| Other assets | 1,091.2 | 1,140.0 | |||||||||
| Total assets | $ | 23,079.1 | $ | 25,691.7 | |||||||
| LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term borrowings | $ | 508.1 | $ | 241.4 | |||||||
| Current maturities of long-term debt | 404.7 | 956.8 | |||||||||
| Accounts payable | 1,099.4 | 1,107.1 | |||||||||
| Other accrued expenses and liabilities | 901.6 | 836.4 | |||||||||
| Total current liabilities | 2,913.8 | 3,141.7 | |||||||||
| Long-term debt, less current maturities | 10,683.6 | 10,681.1 | |||||||||
| Deferred income taxes and other liabilities | 1,325.8 | 1,804.3 | |||||||||
| Total liabilities | 14,923.2 | 15,627.1 | |||||||||
| CBI stockholders’ equity | 7,870.8 | 9,743.1 | |||||||||
| Noncontrolling interests | 285.1 | 321.5 | |||||||||
| Total stockholders’ equity | 8,155.9 | 10,064.6 | |||||||||
| Total liabilities and stockholders’ equity | $ | 23,079.1 | $ | 25,691.7 | |||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 5 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | August 31, 2024 | August 31, 2023 | ||||||||||||||||||||
| Sales | $ | 3,139.1 | $ | 3,053.0 | $ | 5,999.8 | $ | 5,752.5 | |||||||||||||||
| Excise taxes | (220.2) | (216.2) | (419.1) | (400.8) | |||||||||||||||||||
| Net sales | 2,918.9 | 2,836.8 | 5,580.7 | 5,351.7 | |||||||||||||||||||
| Cost of product sold | (1,407.1) | (1,386.9) | (2,665.1) | (2,644.0) | |||||||||||||||||||
| Gross profit | 1,511.8 | 1,449.9 | 2,915.6 | 2,707.7 | |||||||||||||||||||
| Selling, general, and administrative expenses | (491.2) | (471.2) | (953.4) | (964.3) | |||||||||||||||||||
Goodwill impairment | (2,250.0) | — | (2,250.0) | — | |||||||||||||||||||
| Operating income (loss) | (1,229.4) | 978.7 | (287.8) | 1,743.4 | |||||||||||||||||||
| Income (loss) from unconsolidated investments | (1.2) | (20.2) | 80.8 | (435.6) | |||||||||||||||||||
Interest expense, net | (104.0) | (110.6) | (206.8) | (229.5) | |||||||||||||||||||
| Income (loss) before income taxes | (1,334.6) | 847.9 | (413.8) | 1,078.3 | |||||||||||||||||||
| (Provision for) benefit from income taxes | 152.2 | (147.2) | 124.2 | (238.4) | |||||||||||||||||||
| Net income (loss) | (1,182.4) | 700.7 | (289.6) | 839.9 | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (16.6) | (10.7) | (32.4) | (14.0) | |||||||||||||||||||
| Net income (loss) attributable to CBI | $ | (1,199.0) | $ | 690.0 | $ | (322.0) | $ | 825.9 | |||||||||||||||
Class A Common Stock: | |||||||||||||||||||||||
Net income (loss) per common share attributable to CBI – basic | $ | (6.59) | $ | 3.76 | $ | (1.77) | $ | 4.50 | |||||||||||||||
Net income (loss) per common share attributable to CBI – diluted | $ | (6.59) | $ | 3.74 | $ | (1.77) | $ | 4.49 | |||||||||||||||
Weighted average common shares outstanding – basic | 181.947 | 183.498 | 182.356 | 183.384 | |||||||||||||||||||
Weighted average common shares outstanding – diluted | 181.947 | 184.277 | 182.356 | 184.074 | |||||||||||||||||||
Cash dividends declared per common share | $ | 1.01 | $ | 0.89 | $ | 2.02 | $ | 1.78 | |||||||||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 6 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||||||
| Six Months Ended | |||||||||||
| August 31, 2024 | August 31, 2023 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net income (loss) | $ | (289.6) | $ | 839.9 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Unrealized net (gain) loss on securities measured at fair value | 2.5 | 74.4 | |||||||||
| Deferred tax provision (benefit) | (178.5) | 26.3 | |||||||||
| Depreciation | 220.8 | 213.7 | |||||||||
| Stock-based compensation | 41.0 | 32.5 | |||||||||
| Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings | (1.9) | 226.5 | |||||||||
| Noncash lease expense | 57.7 | 43.3 | |||||||||
Impairment of equity method investments | 2.1 | 135.8 | |||||||||
Net gain on conversion and exchange to Canopy exchangeable shares | (83.3) | — | |||||||||
Goodwill impairment | 2,250.0 | — | |||||||||
| Change in operating assets and liabilities, net of effects from purchase and sale of business: | |||||||||||
| Accounts receivable | (40.6) | (30.0) | |||||||||
| Inventories | 14.7 | 81.3 | |||||||||
| Prepaid expenses and other current assets | (77.7) | (47.9) | |||||||||
| Accounts payable | 134.5 | (56.4) | |||||||||
| Deferred revenue | 9.7 | 17.6 | |||||||||
| Other accrued expenses and liabilities | (55.4) | (33.9) | |||||||||
| Other | (133.7) | 98.9 | |||||||||
| Total adjustments | 2,161.9 | 782.1 | |||||||||
| Net cash provided by (used in) operating activities | 1,872.3 | 1,622.0 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Purchase of property, plant, and equipment | (703.1) | (582.0) | |||||||||
| Purchase of business, net of cash acquired | (158.3) | (7.5) | |||||||||
| Investments in equity method investees and securities | (19.0) | (27.6) | |||||||||
| Proceeds from sale of assets | 32.8 | 14.8 | |||||||||
| Proceeds from sale of business | — | 5.4 | |||||||||
| Other investing activities | (10.0) | (4.0) | |||||||||
| Net cash provided by (used in) investing activities | (857.6) | (600.9) | |||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 7 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||||||
| Six Months Ended | |||||||||||
| August 31, 2024 | August 31, 2023 | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from issuance of long-term debt | — | 744.8 | |||||||||
| Principal payments of long-term debt | (554.3) | (805.1) | |||||||||
| Net proceeds from (repayments of) short-term borrowings | 266.7 | (697.9) | |||||||||
| Dividends paid | (368.6) | (327.6) | |||||||||
| Purchases of treasury stock | (449.2) | (35.0) | |||||||||
| Proceeds from shares issued under equity compensation plans | 48.4 | 86.2 | |||||||||
| Payments of minimum tax withholdings on stock-based payment awards | (13.8) | (11.2) | |||||||||
| Payments of debt issuance, debt extinguishment, and other financing costs | — | (5.3) | |||||||||
| Distributions to noncontrolling interests | (32.5) | (21.3) | |||||||||
| Payment of contingent consideration | (0.7) | — | |||||||||
| Net cash provided by (used in) financing activities | (1,104.0) | (1,072.4) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1.5 | 1.1 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (87.8) | (50.2) | |||||||||
| Cash and cash equivalents, beginning of period | 152.4 | 133.5 | |||||||||
| Cash and cash equivalents, end of period | $ | 64.6 | $ | 83.3 | |||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 8 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
SUMMARIZED SEGMENT, INCOME (LOSS) FROM UNCONSOLIDATED INVESTMENTS,
AND DEPRECIATION AND AMORTIZATION INFORMATION
(in millions)
(unaudited)
Management excludes items that affect comparability from its evaluation of the results of each operating segment as these comparable adjustments are not reflective of core operations of the segments. Segment operating performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these comparable adjustments.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | Percent Change | August 31, 2024 | August 31, 2023 | Percent Change | ||||||||||||||||||||||||||||||
| Consolidated | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 2,918.9 | $ | 2,836.8 | 3 | % | $ | 5,580.7 | $ | 5,351.7 | 4 | % | |||||||||||||||||||||||
| Gross profit | $ | 1,511.8 | $ | 1,449.9 | 4 | % | $ | 2,915.6 | $ | 2,707.7 | 8 | % | |||||||||||||||||||||||
| Operating income (loss) | $ | (1,229.4) | $ | 978.7 | NM | $ | (287.8) | $ | 1,743.4 | (117 | %) | ||||||||||||||||||||||||
| % Net sales | NM | 34.5 | % | NM | 32.6 | % | |||||||||||||||||||||||||||||
Income (loss) from unconsolidated investments | $ | (1.2) | $ | (20.2) | 94 | % | $ | 80.8 | $ | (435.6) | 119 | % | |||||||||||||||||||||||
Depreciation and amortization | $ | 109.6 | $ | 108.7 | 1 | % | $ | 221.5 | $ | 214.4 | 3 | % | |||||||||||||||||||||||
Comparable adjustments (1) | |||||||||||||||||||||||||||||||||||
| Gross profit | $ | (18.6) | $ | 23.9 | NM | $ | 3.4 | $ | (10.9) | NM | |||||||||||||||||||||||||
| Operating income (loss) | $ | (2,319.2) | $ | 10.9 | NM | $ | (2,301.6) | $ | (51.6) | NM | |||||||||||||||||||||||||
| Income (loss) from unconsolidated investments | $ | (4.5) | $ | (7.4) | NM | $ | 78.8 | $ | (391.8) | NM | |||||||||||||||||||||||||
| Beer | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 2,530.2 | $ | 2,392.7 | 6 | % | $ | 4,803.0 | $ | 4,491.3 | 7 | % | |||||||||||||||||||||||
| Segment gross profit | $ | 1,366.4 | $ | 1,228.7 | 11 | % | $ | 2,579.5 | $ | 2,327.4 | 11 | % | |||||||||||||||||||||||
| % Net sales | 54.0 | % | 51.4 | % | 53.7 | % | 51.8 | % | |||||||||||||||||||||||||||
| Segment operating income (loss) | $ | 1,077.7 | $ | 953.9 | 13 | % | $ | 2,000.7 | $ | 1,751.7 | 14 | % | |||||||||||||||||||||||
| % Net sales | 42.6 | % | 39.9 | % | 41.7 | % | 39.0 | % | |||||||||||||||||||||||||||
Segment depreciation and amortization | $ | 82.5 | $ | 81.4 | 1 | % | $ | 168.9 | $ | 160.2 | 5 | % | |||||||||||||||||||||||
| Wine and Spirits | |||||||||||||||||||||||||||||||||||
| Wine net sales | $ | 336.2 | $ | 383.9 | (12 | %) | $ | 665.5 | $ | 744.9 | (11 | %) | |||||||||||||||||||||||
| Spirits net sales | 52.5 | 60.2 | (13 | %) | 112.2 | 115.5 | (3 | %) | |||||||||||||||||||||||||||
Net sales | $ | 388.7 | $ | 444.1 | (12 | %) | $ | 777.7 | $ | 860.4 | (10 | %) | |||||||||||||||||||||||
| Segment gross profit | $ | 164.0 | $ | 197.3 | (17 | %) | $ | 332.7 | $ | 391.2 | (15 | %) | |||||||||||||||||||||||
| % Net sales | 42.2 | % | 44.4 | % | 42.8 | % | 45.5 | % | |||||||||||||||||||||||||||
| Segment operating income (loss) | $ | 70.5 | $ | 80.7 | (13 | %) | $ | 130.2 | $ | 160.0 | (19 | %) | |||||||||||||||||||||||
| % Net sales | 18.1 | % | 18.2 | % | 16.7 | % | 18.6 | % | |||||||||||||||||||||||||||
Segment income (loss) from unconsolidated investments | $ | 5.4 | $ | 8.3 | (35 | %) | $ | 5.8 | $ | 10.6 | (45 | %) | |||||||||||||||||||||||
Segment depreciation and amortization | $ | 21.5 | $ | 23.1 | (7 | %) | $ | 42.8 | $ | 45.6 | (6 | %) | |||||||||||||||||||||||
| Corporate Operations and Other | |||||||||||||||||||||||||||||||||||
| Segment operating income (loss) | $ | (58.4) | $ | (66.8) | 13 | % | $ | (117.1) | $ | (116.7) | — | % | |||||||||||||||||||||||
Segment income (loss) from unconsolidated investments | $ | (2.1) | $ | (21.1) | 90 | % | $ | (3.8) | $ | (54.4) | 93 | % | |||||||||||||||||||||||
Segment depreciation and amortization | $ | 5.6 | $ | 4.2 | 33 | % | $ | 9.8 | $ | 8.6 | 14 | % | |||||||||||||||||||||||
(1)See page 12 for further information on comparable adjustments.
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 9 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION
(in millions)
(unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | Percent Change | August 31, 2024 | August 31, 2023 | Percent Change | ||||||||||||||||||||||||||||||
| Beer | |||||||||||||||||||||||||||||||||||
| (branded product, 24-pack, 12-ounce case equivalents) | |||||||||||||||||||||||||||||||||||
| Shipments | 128.6 | 123.0 | 4.6 | % | 243.7 | 230.0 | 6.0 | % | |||||||||||||||||||||||||||
Depletions (1) (2) | 2.4 | % | 4.2 | % | |||||||||||||||||||||||||||||||
| Wine and Spirits | |||||||||||||||||||||||||||||||||||
| (branded product, 9-liter case equivalents) | |||||||||||||||||||||||||||||||||||
| Shipments | 5.5 | 6.1 | (9.8 | %) | 11.1 | 12.0 | (7.5 | %) | |||||||||||||||||||||||||||
U.S. Wholesale shipments | 4.9 | 5.3 | (7.5 | %) | 9.8 | 10.5 | (6.7 | %) | |||||||||||||||||||||||||||
Depletions (1) | (17.6 | %) | (15.1 | %) | |||||||||||||||||||||||||||||||
(1) | Depletions represent U.S. distributor shipments of our respective branded products to retail customers, based on third-party data. | ||||||||||||||||||||||
(2) | Includes an adjustment to remove volumes associated with the craft beer brand divestitures for the period March 1, 2023, through May 31, 2023, included in the six months ended August 31, 2023. | ||||||||||||||||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 10 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data)
(unaudited)
We report our financial results in accordance with GAAP. However, non-GAAP financial measures, as defined in the reconciliation tables below, are provided because we use this information in evaluating the results of our core operations and/or internal goal setting. In addition, we believe this information provides our investors valuable insight on underlying business trends and results in order to evaluate year-over-year financial performance. See the tables below for supplemental financial data and corresponding reconciliations of these non-GAAP financial measures to GAAP financial measures for the periods presented. Non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, our reported results prepared in accordance with GAAP.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | Percent Change | August 31, 2024 | August 31, 2023 | Percent Change | ||||||||||||||||||||||||||||||
| Operating income (loss) (GAAP) | $ | (1,229.4) | $ | 978.7 | NM | $ | (287.8) | $ | 1,743.4 | (117 | %) | ||||||||||||||||||||||||
Comparable adjustments (Non-GAAP) (1) | 2,319.2 | (10.9) | 2,301.6 | 51.6 | |||||||||||||||||||||||||||||||
| Comparable operating income (loss) (Non-GAAP) | $ | 1,089.8 | $ | 967.8 | 13 | % | $ | 2,013.8 | $ | 1,795.0 | 12 | % | |||||||||||||||||||||||
| % Net sales | 37.3 | % | 34.1 | % | 36.1 | % | 33.5 | % | |||||||||||||||||||||||||||
| Net income (loss) attributable to CBI (GAAP) | $ | (1,199.0) | $ | 690.0 | NM | $ | (322.0) | $ | 825.9 | (139 | %) | ||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests (GAAP) | 16.6 | 10.7 | 32.4 | 14.0 | |||||||||||||||||||||||||||||||
| Provision for (benefit from) income taxes (GAAP) | (152.2) | 147.2 | (124.2) | 238.4 | |||||||||||||||||||||||||||||||
| Interest expense, net (GAAP) | 104.0 | 110.6 | 206.8 | 229.5 | |||||||||||||||||||||||||||||||
| Adjusted EBIT (Non-GAAP) | (1,230.6) | 958.5 | NM | (207.0) | 1,307.8 | (116 | %) | ||||||||||||||||||||||||||||
Comparable adjustments (Non-GAAP) (1) | 2,323.7 | (3.5) | 2,222.8 | 443.4 | |||||||||||||||||||||||||||||||
Comparable Canopy EIE (Non-GAAP) (2) | — | 19.5 | — | 50.3 | |||||||||||||||||||||||||||||||
| Comparable EBIT (Non-GAAP) | $ | 1,093.1 | $ | 974.5 | 12 | % | $ | 2,015.8 | $ | 1,801.5 | 12 | % | |||||||||||||||||||||||
| Net income (loss) attributable to CBI (GAAP) | $ | (1,199.0) | $ | 690.0 | NM | $ | (322.0) | $ | 825.9 | (139 | %) | ||||||||||||||||||||||||
Comparable adjustments (Non-GAAP) (1) | 1,986.6 | (8.2) | 1,764.1 | 390.4 | |||||||||||||||||||||||||||||||
Comparable Canopy EIE (Non-GAAP) (2) | — | 17.8 | — | 42.1 | |||||||||||||||||||||||||||||||
| Comparable net income (loss) attributable to CBI (Non-GAAP) | $ | 787.6 | $ | 699.6 | 13 | % | $ | 1,442.1 | $ | 1,258.4 | 15 | % | |||||||||||||||||||||||
EPS (GAAP) | $ | (6.59) | $ | 3.74 | NM | $ | (1.77) | $ | 4.49 | (139 | %) | ||||||||||||||||||||||||
Comparable adjustments (Non-GAAP) (1) | 10.89 | (0.04) | 9.64 | 2.12 | |||||||||||||||||||||||||||||||
Comparable Canopy EIE (Non-GAAP) (2) | — | 0.10 | — | 0.23 | |||||||||||||||||||||||||||||||
Comparable EPS (Non-GAAP) (3) | $ | 4.32 | $ | 3.80 | 14 | % | $ | 7.88 | $ | 6.84 | 15 | % | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted (3) | 182.486 | 184.277 | 182.960 | 184.074 | |||||||||||||||||||||||||||||||
(1)See page 12 for further information on comparable adjustments.
(2)See page 14 for further information on comparable Canopy EIE.
(3)Comparable basis diluted net income (loss) per share (“comparable EPS”) may not sum due to rounding as each item is computed independently. The comparable adjustments and comparable EPS are calculated on a fully dilutive basis. For the three months and six months ended August 31, 2024, we have excluded 0.539 million and 0.604 million weighted average common shares outstanding, respectively, as the effect of including these would have been anti-dilutive.
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 11 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
The comparable adjustments that impacted comparability in our results for each period are as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | August 31, 2024 | August 31, 2023 | ||||||||||||||||||||
| Net gain (loss) on undesignated commodity derivative contracts | $ | (24.3) | $ | 19.1 | $ | (9.7) | $ | (15.6) | |||||||||||||||
| Flow through of inventory step-up | (1.3) | (0.8) | (2.4) | (1.5) | |||||||||||||||||||
| Settlements of undesignated commodity derivative contracts | 7.0 | 5.6 | 15.5 | 6.2 | |||||||||||||||||||
| Comparable adjustments, Gross profit | (18.6) | 23.9 | 3.4 | (10.9) | |||||||||||||||||||
| Goodwill impairment | (2,250.0) | — | (2,250.0) | — | |||||||||||||||||||
| Restructuring and other strategic business development costs | (24.5) | (3.4) | (26.3) | (18.3) | |||||||||||||||||||
| Transition services agreements activity | (4.8) | (7.0) | (7.6) | (12.7) | |||||||||||||||||||
| Transaction, integration, and other acquisition-related costs | (0.6) | (0.3) | (0.8) | (0.6) | |||||||||||||||||||
| Other gains (losses) | (20.7) | (2.3) | (20.3) | (9.1) | |||||||||||||||||||
| Comparable adjustments, Operating income (loss) | (2,319.2) | 10.9 | (2,301.6) | (51.6) | |||||||||||||||||||
| Comparable adjustments, Income (loss) from unconsolidated investments | (4.5) | (7.4) | 78.8 | (391.8) | |||||||||||||||||||
| Comparable adjustments, Adjusted EBIT | (2,323.7) | 3.5 | (2,222.8) | (443.4) | |||||||||||||||||||
Comparable adjustments, Interest expense, net | (0.3) | — | (0.3) | (0.7) | |||||||||||||||||||
| Comparable adjustments, (Provision for) benefit from income taxes | 337.4 | 4.7 | 459.0 | 53.7 | |||||||||||||||||||
| Comparable adjustments, Net income (loss) attributable to CBI | $ | (1,986.6) | $ | 8.2 | $ | (1,764.1) | $ | (390.4) | |||||||||||||||
Undesignated commodity derivative contracts
Net gain (loss) on undesignated commodity derivative contracts represents a net gain (loss) from the changes in fair value of undesignated commodity derivative contracts. The net gain (loss) is reported outside of segment operating results until such time that the underlying exposure is recognized in the segment operating results. At settlement, the net gain (loss) from the changes in fair value of the undesignated commodity derivative contracts is reported in the appropriate operating segment, allowing the results of our operating segments to reflect the economic effects of the commodity derivative contracts without the resulting unrealized mark to fair value volatility.
Flow through of inventory step-up
In connection with acquisitions, the allocation of purchase price in excess of book value for certain inventories on hand at the date of acquisition is referred to as inventory step-up. Inventory step-up represents an assumed manufacturing profit attributable to the acquired business prior to acquisition.
Goodwill impairment
We recognized a goodwill impairment in connection with negative trends within our Wine and Spirits business.
Restructuring and other strategic business development costs
We recognized costs in connection with certain activities which are intended to streamline, increase efficiencies, and reduce our cost structure primarily within our Wine and Spirits segment.
Transition services agreements activity
We recognized costs in connection with transition services agreements related to the previous sale of a portion of our wine and spirits business.
Transaction, integration, and other acquisition-related costs
We recognized costs in connection with our investments, acquisitions, and divestitures.
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 12 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
Other gains (losses)
Primarily includes the following:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | August 31, 2024 | August 31, 2023 | ||||||||||||||||||||
Net loss on foreign currency as a result of the resolution of various tax examinations and assessments | $ | (20.7) | $ | — | $ | (20.7) | $ | — | |||||||||||||||
| Gain (loss) on sale of business | $ | — | $ | (7.9) | $ | — | $ | (14.9) | |||||||||||||||
Recognition of a previously deferred gain upon release of a related indemnity | $ | — | $ | 5.6 | $ | — | $ | 5.6 | |||||||||||||||
Comparable adjustments, Income (loss) from unconsolidated investments
Primarily includes the following:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | August 31, 2024 | August 31, 2023 | ||||||||||||||||||||
Unrealized gain (loss) from the changes in fair value of securities measured at fair value | $ | (2.5) | $ | (2.6) | $ | (2.5) | $ | (74.4) | |||||||||||||||
Impairment of equity method investments | $ | (2.1) | $ | (12.3) | $ | (2.1) | $ | (135.8) | |||||||||||||||
Net gain on conversion and exchange to Canopy exchangeable shares | $ | — | $ | — | $ | 83.3 | $ | — | |||||||||||||||
Comparable adjustments to Canopy EIE (see page 14 for further information) | $ | — | $ | 7.5 | $ | — | $ | (181.5) | |||||||||||||||
Comparable adjustments, Interest expense, net
We recognized losses from the write-off of an unamortized discount and debt issuance costs in connection with the repayment of outstanding term loan facility borrowings for the six months ended August 31, 2023, and wrote-off accrued interest income related to a convertible note issued to an equity method investment for the three months and six months ended August 31, 2024.
Comparable adjustments, (Provision for) benefit from income taxes
The effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the comparable adjustment was recognized. We recognized a benefit from income taxes for the three months and six months ended August 31, 2024, resulting from the goodwill impairment, net of the non-deductible portion. Comparable adjustments, (Provision for) benefit from income taxes also include items solely impacting income taxes and largely consist of the following:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | August 31, 2024 | August 31, 2023 | ||||||||||||||||||||
Net income tax benefit recognized as a result of the resolution of various tax examinations and assessments related to prior periods | $ | 8.5 | $ | — | $ | 129.7 | $ | — | |||||||||||||||
Net income tax expense recognized as a result of the sale of the remaining assets at the Mexicali Brewery | $ | (9.6) | $ | — | $ | (9.6) | $ | — | |||||||||||||||
| Net income tax benefit recognized for adjustments to valuation allowances | $ | — | $ | — | $ | 4.4 | $ | — | |||||||||||||||
| Net income tax benefit recognized as a result of a change in tax entity classification | $ | — | $ | 2.3 | $ | — | $ | 31.2 | |||||||||||||||
| Net income tax benefit recognized as a result of a legislative update in Switzerland | $ | — | $ | — | $ | — | $ | 4.7 | |||||||||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 13 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
Canopy Equity Earnings (Losses) and Related Activities (“Canopy EIE”)
Non-GAAP Canopy EIE financial measures for the three months and six months ended August 31, 2023, are provided because management used this information to separately monitor our former equity method investment in Canopy. Financial measures excluding Canopy EIE are non-GAAP and are provided because management used this information to evaluate the results of our core operations which management determined did not include our former equity method investment in Canopy. In addition, we believe this information provides our investors valuable insight to understand how management views the Company’s performance and on underlying business trends and results in order to evaluate year-over-year financial performance of our ongoing core business, including relative to industry competitors.
| For the Three Months Ended August 31, 2023 | For the Six Months Ended August 31, 2023 | ||||||||||
| (in millions) | |||||||||||
Equity earnings (losses) and related activities, Canopy EIE (GAAP) (1) | $ | (12.0) | $ | (231.8) | |||||||
(Provision for) benefit from income taxes (2) | 1.7 | 8.2 | |||||||||
Net income (loss) attributable to CBI, Canopy EIE (GAAP) (1) | $ | (10.3) | $ | (223.6) | |||||||
Equity earnings (losses) and related activities, Canopy EIE (GAAP) (1) | $ | (12.0) | $ | (231.8) | |||||||
| Net (gain) loss on fair value financial instruments | (15.0) | (8.1) | |||||||||
| (Gain) loss on dilution of Canopy stock ownership | 4.2 | 7.8 | |||||||||
| Acquisition costs | 1.8 | 2.7 | |||||||||
| Restructuring and other strategic business development costs | 0.4 | 161.0 | |||||||||
| Goodwill impairment | — | 14.1 | |||||||||
| Other (gains) losses | 1.1 | 4.0 | |||||||||
| Comparable adjustments, Canopy EIE (Non-GAAP) | (7.5) | 181.5 | |||||||||
Comparable equity earnings (losses), Canopy EIE (Non-GAAP) (1) | (19.5) | (50.3) | |||||||||
Comparable (provision for) benefit from income taxes (Non-GAAP) (2) | 1.7 | 8.2 | |||||||||
Comparable net income (loss) attributable to CBI, Canopy EIE (Non-GAAP) (1) | $ | (17.8) | $ | (42.1) | |||||||
| For the Three Months Ended August 31, 2023 | For the Six Months Ended August 31, 2023 | ||||||||||
| EPS, Canopy EIE (GAAP) | $ | (0.06) | $ | (1.21) | |||||||
| Comparable adjustments, Canopy EIE (Non-GAAP) | (0.04) | 0.99 | |||||||||
Comparable EPS, Canopy EIE (Non-GAAP) (3) | $ | (0.10) | $ | (0.23) | |||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 14 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
Three Months Ended | |||||||||||||||||||||||||||||||||||
| August 31, 2024 | August 31, 2023 | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (Provision for) benefit from income taxes (2) | Effective tax rate (4) | Income (loss) before income taxes | (Provision for) benefit from income taxes (2) | Effective tax rate (4) | ||||||||||||||||||||||||||||||
| Reported basis (GAAP) | $ | (1,334.6) | $ | 152.2 | 11.4 | % | $ | 847.9 | $ | (147.2) | 17.4 | % | |||||||||||||||||||||||
| Comparable adjustments - (Non-GAAP) | 2,324.0 | (337.4) | (3.5) | (4.7) | |||||||||||||||||||||||||||||||
Comparable Canopy EIE (Non-GAAP) | — | — | 19.5 | (1.7) | |||||||||||||||||||||||||||||||
| Comparable basis (Non-GAAP) | $ | 989.4 | $ | (185.2) | 18.7 | % | $ | 863.9 | $ | (153.6) | 17.8 | % | |||||||||||||||||||||||
(1)Equity earnings (losses) and related activities are included in income (loss) from unconsolidated investments.
(2)The benefit from income taxes effective tax rate applied to our Canopy EIE is generally based on the tax rates of the legal entities that hold our investment. The comparable adjustment effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the adjustment was recognized.
(3)May not sum due to rounding as each item is computed independently. The comparable adjustments and comparable EPS are calculated on a fully dilutive basis.
(4)Effective tax rate is not considered a GAAP financial measure, for purposes of this reconciliation, we derived the reported GAAP measure based on GAAP results, which serves as the basis for the reconciliation to the comparable non-GAAP financial measure.
| Operating Income Guidance | Guidance Range for the Year Ending February 28, 2025 | Actual for the Year Ended February 29, 2024 | Percentage Change | ||||||||||||||||||||||||||
Operating income (GAAP) | $ | 1,179 | $ | 1,217 | $ | 3,169.7 | (63) | % | (62) | % | |||||||||||||||||||
Comparable adjustments (Non-GAAP) (1) | 2,323 | 2,323 | 75.8 | ||||||||||||||||||||||||||
Comparable operating income (Non-GAAP) | $ | 3,502 | $ | 3,540 | $ | 3,245.5 | 8 | % | 9 | % | |||||||||||||||||||
(1) | Comparable adjustments include: (2) (3) | Estimated for the Year Ending February 28, 2025 | Actual for the Year Ended February 29, 2024 | |||||||||||
Goodwill impairment | $ | 2,250 | $ | — | ||||||||||
| Restructuring and other strategic business development costs | $ | 26 | $ | 46.3 | ||||||||||
| Transition services agreements activity | $ | 21 | $ | 24.9 | ||||||||||
| Other (gains) losses | $ | 20 | $ | 11.2 | ||||||||||
| Flow through of inventory step-up | $ | 10 | $ | 3.6 | ||||||||||
Net (gain) loss on undesignated commodity derivative contracts | $ | 10 | $ | 44.2 | ||||||||||
| Transaction, integration, and other acquisition-related costs | $ | 1 | $ | 0.6 | ||||||||||
| Settlements of undesignated commodity derivative contracts | $ | (16) | $ | (15.0) | ||||||||||
| (Gain) loss on sale of business | $ | — | $ | 15.1 | ||||||||||
| Insurance recoveries | $ | — | $ | (55.1) | ||||||||||
(2) | See page 12 for further information on comparable adjustments. | |||||||||||||
(3) | May not sum due to rounding. | |||||||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 15 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
| EPS Guidance | Range for the Year Ending February 28, 2025 | Actual for the Year Ended February 29, 2024 | |||||||||||||||
| Forecasted EPS (GAAP) | $ | 4.05 | $ | 4.25 | $ | 9.39 | |||||||||||
Comparable adjustments (Non-GAAP) (1) | 9.55 | 9.55 | 2.67 | ||||||||||||||
| Comparable basis, Canopy EIE (Non-GAAP) | — | — | 0.32 | ||||||||||||||
Forecasted comparable EPS (Non-GAAP) (2) | $ | 13.60 | $ | 13.80 | $ | 12.38 | |||||||||||
(1) | Comparable adjustments include: (2)(3) | Estimated for the Year Ending February 28, 2025 | Actual for the Year Ended February 29, 2024 | |||||||||||
Goodwill impairment | $ | 10.51 | $ | — | ||||||||||
| Restructuring and other strategic business development costs | $ | 0.11 | $ | 0.20 | ||||||||||
| Other (gains) losses | $ | 0.11 | $ | 0.06 | ||||||||||
| Transition services agreements activity | $ | 0.09 | $ | 0.10 | ||||||||||
| Flow through of inventory step-up | $ | 0.04 | $ | 0.01 | ||||||||||
| Net (gain) loss on undesignated commodity derivative contracts | $ | 0.04 | $ | 0.18 | ||||||||||
| Net income tax benefit recognized as a result of the resolution of various tax examinations and assessments related to prior periods | $ | (0.71) | $ | — | ||||||||||
| (Income) loss from unconsolidated investments | $ | (0.44) | $ | 2.58 | ||||||||||
Net income tax expense recognized as a result of the sale of the remaining assets at the Mexicali Brewery | $ | (0.11) | $ | — | ||||||||||
| Settlements of undesignated commodity derivative contracts | $ | (0.06) | $ | (0.06) | ||||||||||
Net income tax benefit recognized for adjustments to valuation allowances | $ | (0.02) | $ | — | ||||||||||
(Gain) loss on sale of business | $ | — | $ | 0.06 | ||||||||||
Loss of interest income on write-off of a convertible note | $ | — | $ | 0.01 | ||||||||||
Insurance recoveries | $ | — | $ | (0.25) | ||||||||||
| Net income tax benefit recognized as a result of a change in tax entity classification | $ | — | $ | (0.17) | ||||||||||
Net income tax benefit recognized as a result of a legislative update in Switzerland | $ | — | $ | (0.05) | ||||||||||
(2) | May not sum due to rounding as each item is computed independently. The comparable adjustments and comparable EPS are calculated on a fully dilutive basis. | |||||||||||||
(3) | See page 12 for further information on comparable adjustments. | |||||||||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 16 | ||||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
Free Cash Flow Guidance Free cash flow, as defined in the reconciliation below, is considered a liquidity measure and is considered to provide useful information to investors about the amount of cash generated, which can then be used, after required debt service and dividend payments, for other general corporate purposes. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. Free cash flow should be considered in addition to, not as a substitute for, or superior to, cash flow from operating activities prepared in accordance with GAAP. | |||||||||||
| Range for the Year Ending February 28, 2025 | |||||||||||
| Net cash provided by operating activities (GAAP) | $ | 2,800 | $ | 3,000 | |||||||
| Purchase of property, plant, and equipment | (1,400) | (1,500) | |||||||||
| Free cash flow (Non-GAAP) | $ | 1,400 | $ | 1,500 | |||||||
| Six Months Ended | |||||||||||
| August 31, 2024 | August 31, 2023 | ||||||||||
| Net cash provided by operating activities (GAAP) | $ | 1,872.3 | $ | 1,622.0 | |||||||
| Purchase of property, plant, and equipment | (703.1) | (582.0) | |||||||||
| Free cash flow (Non-GAAP) | $ | 1,169.2 | $ | 1,040.0 | |||||||
Constellation Brands, Inc. Q2 FY 2025 Earnings Release | #WORTHREACHINGFOR I 17 | ||||