10-Q - CONSTELLATION BRANDS, INC. (0000016918) (Filer)

Fri, Jan 10, 7:02 PM (5 days ago)

In the third quarter of fiscal 2025, Constellation Brands, Inc. (NYSE: STZ) reported net sales of $2,463.8 million, slightly down from $2,470.9 million in Q3 FY 2024. The Beer segment showed resilience with a 3% increase in net sales, driven by favorable pricing and shipment volume growth. However, the Wine and Spirits segment declined by 14%, impacted by lower shipment volumes and pricing actions. Overall, operating income decreased significantly to $793.0 million, down from $796.9 million, primarily due to a $2,250 million goodwill impairment in the Wine and Spirits segment. Net income attributable to Constellation Brands was $615.9 million, a 21% increase from $509.1 million, largely due to lower tax provisions. Cash flow from operating activities improved to $2,557.5 million, reflecting robust operational cash generation. The company’s total debt decreased to $11,579.1 million, and it maintained a strong liquidity position with significant borrowing capacity available. Looking forward, Constellation Brands faces macroeconomic uncertainties, including rising costs and changing consumer behaviors, which may impact future operations and profitability. The company continues to focus on premiumization and digital initiatives to drive growth.