Constellation Brands Q1 2021 Earnings Report

Constellation Brands overcame headwinds to deliver solid first quarter results, marked by margin improvement and impressive depletion growth for the Beer Business and Wine & Spirits Power Brand portfolio.

Key Takeaways

Constellation Brands reported net sales of $1.963 billion and a net loss attributable to CBI of $(177.9) million, or $(0.94) per share. Comparable EPS was $2.30, or $2.44) excluding Canopy Growth equity losses. The company generated $687 million in operating cash flow and $542 million in free cash flow. Beer depletions remained strong, with production in Mexico returning to normal levels. The wine & spirits premiumization strategy gained momentum.

Generated reported basis EPS of $(0.94) and comparable basis EPS of $2.30, including Canopy Growth equity losses of $0.14; excluding Canopy Growth equity losses, achieved comparable basis EPS of $2.44

Generated $687 million of operating cash flow and $542 million of free cash flow, an increase of 16% and 24%, respectively

Beer depletions remain strong and consistent with long-term trends; production in Mexico returns to normal levels in June

Wine & spirits premiumization strategy gains momentum, with strong Power Brands performance in IRI channels