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Feb 28, 2023
Constellation Brands Q4 2023 Earnings Report
Constellation Brands' Q4 2023 financial results were released, revealing a mix of challenges and successes across its business segments.
Key Takeaways
Constellation Brands reported Q4 net sales of $1.998 billion, a 5% decrease compared to the previous year. Reported EPS was $1.21, while comparable EPS was $1.98, a 16% decrease. The Beer Business experienced a slight sales decline but maintained strong depletion growth, while the Wine and Spirits Business saw sales decline but improved operating margins.
Net sales decreased by 5% compared to the prior year.
Reported EPS was $1.21, while comparable EPS decreased by 16% to $1.98.
Beer Business posted depletion growth of over 6% driven by Modelo Especial and Corona Extra.
Wine and Spirits Business delivered depletion growth across Premium Wine, Fine Wine, and Craft Spirits brand portfolios.
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 2024 outlook, including expectations for net sales and operating income growth for the Beer Business, organic net sales and operating income growth for the Wine and Spirits Business, and targets for operating cash flow and free cash flow.
Positive Outlook
- Beer: net sales growth 7 - 9%
- Beer: operating income growth 5 - 7%
- Wine and Spirits: organic net sales decline 0.5% to growth of 0.5%
- Wine and Spirits: operating income growth 2 - 4%, excluding $38.5 million of net sales and $19.5 million of gross profit less marketing that are no longer part of the Wine and Spirits Business results
- Tax rate: reported and comparable excluding Canopy equity earnings impact approximately 19%
Challenges Ahead
- Corporate expense: $270 million
- Interest expense: $500 million
- Weighted average diluted shares outstanding: approximately 184 million
- Capital expenditures: $1.2 - $1.3 billion, including approximately $1 billion targeted for Mexico beer operations activities
- Free cash flow: $1.2 - $1.3 billion