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Feb 28, 2022
Constellation Brands Q4 2022 Earnings Report
Constellation Brands' fiscal year 2022 fourth quarter earnings were released, showing growth in net sales and operating income.
Key Takeaways
Constellation Brands reported an 8% increase in net sales and a 21% increase in operating income for Q4 2022. The Beer Business was a key driver, with strong depletion growth and operating margin performance.
Achieved fiscal 2022 reported basis EPS of $(0.22) and comparable basis EPS of $10.20, including Canopy equity losses of $0.80; excluding Canopy equity losses, achieved comparable basis EPS of $10.99, an increase of 5%.
Beer Business delivers strong fiscal 2022 net sales growth and operating margin performance despite COGS headwinds.
Wine and Spirits Business delivers strong organic net sales growth mostly driven by Meiomi, Kim Crawford, and The Prisoner; marketplace performance for high-end brands continues to outpace the overall U.S. wine and spirits category for fiscal 2022.
Generated strong operating and free cash flow of $2.7 billion and $1.7 billion, respectively, for fiscal 2022.
Constellation Brands
Constellation Brands
Constellation Brands Revenue by Segment
Revenue by Segment
Beer Revenue
CapyFin.comWine & Spirits Revenue
CapyFin.com Forward Guidance
Constellation Brands provided its fiscal year 2023 outlook, including EPS, net sales growth, and operating cash flow targets.
Positive Outlook
- Beer: net sales growth 7 - 9%
- Wine and Spirits: net sales decline 1 - 3%
- Operating income growth 4 - 6%
- Tax rate: reported and comparable excluding Canopy equity earnings impact approximately 20%
- Operating cash flow: $2.6 - $2.8 billion
Challenges Ahead
- Capital expenditures: $1.3 - $1.4 billion, including approximately $1.2 billion targeted for Mexico beer operations activities
- Free cash flow: $1.3 - $1.4 billion
- Interest expense: $350 - $360 million
- Weighted average diluted shares outstanding: approximately 189 million; assumes $500 million of share repurchases in Q1
- Total capital expenditures for the Beer Business are expected to be $5.0 billion to $5.5 billion over fiscal 2023 to fiscal 2026