Constellation Brands, Inc. · NYSE:STZ
Constellation Brands — Q2 2024 Earnings Presentation
31 slides from Constellation Brands's earnings presentation, Oct 5, 2023
Slide 1: Second Quarter Fiscal Year 2024 Financial Results
CONSTELLATION BRANDS SECOND QUARTER OCTOBER 5, 2023 Fiscal Year 2024 Financial Results |
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that are based on certain assumptions, All statements other than statements of historical fact in this presentation may be forward-looking estimates, expectations, plans, analyses, and opinions made by management in lig
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS In addition to the risks and uncertainties of ordinary business operations and conditions in the general Transaction upon our future ownership level in Canopy or our future share of Canopy’s reported economy and markets in which we compete, our forward-looking statements c
Slide 4: Use of Non-GAAP Financial Measures, Disclaimer, Caution Regarding Outdated Material
USE OF NON-GAAP FINANCIAL MEASURES, DISCLAIMER, CAUTION REGARDING OUTDATED MATERIAL, AND LOCATION OF DEFINED TERMS This presentation may contain non-GAAP financial measures. These and other non-GAAP financial measures, the purposes for which management uses them, why management believes they are use
Slide 5: Second Quarter Fiscal Year 2024 Key Takeaways
SECOND QUARTER FISCAL YEAR 2024 KEY TAKEAWAYS BEER BUSINESS DELIVERS DOUBLE-DIGIT NET SALES AND OPERATING INCOME GROWTH DRIVEN BY HIGH SINGLE-DIGIT SHIPMENT GROWTH(1) HIGHER-END WINE PORTFOLIO GAINS SHARE AND OUTPACES THE TOTAL WINE CATEGORY (2) COMPANY CONTINUES TO DEPLOY CAPITAL PER STATED PRIORIT
Slide 6: Second Quarter Fiscal Year 2024 Financial Highlights
SECOND QUARTER FISCAL YEAR 2024 FINANCIAL HIGHLIGHTS Adjusted Earnings Diluted Net Income Operating Net Income (Loss) Before (Loss) Per Share EPS CONSOLIDATED Net Sales Income (Loss) Attributable to CBI Interest & Taxes Attributable to CBI (EPS) Excluding Canopy EIE Q2 FY24 (1) | In millions, except
Slide 7: Delivering Against Our Strategic Initiatives in Fiscal Year 2024
DELIVERING AGAINST OUR STRATEGIC INITIATIVES IN FISCAL YEAR 2024 (1) Q2 FY24 DEPLETION GROWTH (DECLINE) • Modelo Especial: ~9% • Meiomi: ~7% 1 CONTINUE TO BUILD POWERFUL BRANDS THAT PEOPLE LOVE • Corona Extra: ~1% • Pacifico: ~15% • Kim Crawford: ~6% • The Prisoner Wine Co.: ~2% • Modelo Chelada Bra
Slide 8: Beer Business Maintained Its Industry-Leading Performance
BEER BUSINESS MAINTAINED ITS INDUSTRY-LEADING PERFORMANCE Q2 FY24 vs Q2 FY23 RESULTS ($ IN MILLIONS) FY24 OUTLOOK vs FY23 RESULTS ($ IN MILLIONS) $65 +8% to +9% Price Total YOY Per 1-2% Algorithm Total YOY Per +MSD% Algorithm +6% $(35) – to +7% Mktg. 7.1% of Net Sales $(40) $2,862 Further details on
Slide 9: Beer Business Other COGS Affected by Inflationary Pressures
BEER BUSINESS OTHER COGS AFFECTED BY INFLATIONARY PRESSURES FY24 OUTLOOK BEER BUSINESS OTHER COGS Share % Change YOY 55-60% PACKAGING & RAW MATERIALS (OF +HSD TOTAL COGS) 20-25% FREIGHT (OF +HSD TOTAL COGS) 10-15% LABOR & OVERHEAD (OF +HT TOTAL COGS) | 9
Slide 10: Wine & Spirits Business Continued to Advance Its Strategy
WINE & SPIRITS BUSINESS CONTINUED TO ADVANCE ITS STRATEGY Q2 FY24 vs Q2 FY23 RESULTS ($ IN MILLIONS) FY24 OUTLOOK vs FY23 RESULTS ($ IN MILLIONS) -0.5% to +0.5% Total YOY Total YOY Net Sales of $16 Net Sales of Flat to -LSD% +LSD% Brands Divested Brands Divested in Q3 FY23 in Q3 FY23 $(74) WINE WINE
Slide 11: Second Quarter Fiscal Year 2024 Results & Full Year Outlook
SECOND QUARTER FISCAL YEAR 2024 RESULTS & FULL YEAR OUTLOOK (% CHANGES YOY) Q2 FY24 RESULTS FY24 OUTLOOK OTHER FY24 OUTLOOK CONSIDERATIONS Net Sales Beer: $2.4B | +12% Beer: +8% to +9% Beer: ~55% of volumes expected in H1 W&S: $444M | (14%) Reported W&S: (0.5%) to +0.5% Organic (2) W&S: ~55% of volu
Slide 12: Appendix: Defined Terms & Additional Operating & Financial Information
APPENDIX DEFINED TERMS & ADDITIONAL OPERATING & FINANCIAL INFORMATION |
Slide 13: Defined Terms
DEFINED TERMS Unless the context otherwise requires, the terms “Company,” “CBI,” "STZ," “we,” “our,” or “us” refer to Constellation Brands, Inc. and its subsidiaries. We use terms in this presentation that are specific to us or are abbreviations that may not be commonly known or used. Term Meaning T
Slide 14: Historical Beer Business Shipment Volume Cadence
HISTORICAL BEER BUSINESS SHIPMENT VOLUME CADENCE Q4 Q4 Q4 Q4 Q4 21% 21% 23% 20% 22% H2 H2 ~44% H2 ~44% H2 H2 ~45% ~50% ~49% Q3 Q3 Q3 23% 23% Q3 Q3 25% 27% 26% Q2 Q2 Q2 30% 30% Q2 Q2 29% 27% 28% H1 H1 H1 ~56% ~56% H1 H1 ~55% ~50% ~51% Q1 Q1 Q1 Q1 Q1 26% 26% 23% 23% 26% FY19 FY20 FY21 FY22 FY23 Note:
Slide 15: Historical Beer Business Depletion Volume Cadence
HISTORICAL BEER BUSINESS DEPLETION VOLUME CADENCE Q4 Q4 Q4 Q4 Q4 20% 21% 21% 21% 21% H2 H2 ~45% H2 ~44% H2 H2 ~46% ~46% ~46% Q3 Q3 Q3 Q3 Q3 24% 24% 25% 25% 25% Q2 Q2 Q2 Q2 Q2 31% 30% 29% 29% 29% H1 H1 H1 ~56% ~55% H1 H1 ~54% ~54% ~54% Q1 Q1 Q1 Q1 Q1 25% 25% 25% 25% 25% FY19 FY20 FY21 FY22 FY23 Note:
Slide 16: Historical Wine & Spirits Business Shipment Volume Cadence
HISTORICAL WINE & SPIRITS BUSINESS SHIPMENT VOLUME CADENCE Q4 Q4 Q4 Q4 Q4 25% 21% 22% 26% 26% H2 H2 H2 H2 H2 ~50% ~50% ~50% ~48% ~53% Q3 Q3 Q3 Q3 29% Q3 26% 25% 24% 27% Q2 Q2 Q2 Q2 Q2 27% 27% 27% 26% 25% H1 H1 H1 H1 H1 ~52% ~50% ~50% ~50% ~47% Q1 Q1 Q1 Q1 Q1 23% 23% 24% 22% 25% FY19 FY20 FY21 FY22 F
Slide 17: Historical Wine & Spirits Business Depletion Volume Cadence
HISTORICAL WINE & SPIRITS BUSINESS DEPLETION VOLUME CADENCE Q4 Q4 Q4 Q4 Q4 21% 27% 27% 27% 26% H2 H2 H2 H2 H2 ~51% ~51% ~48% ~50% ~52% Q3 Q3 Q3 27% Q3 Q3 24% 24% 25% 24% Q2 Q2 Q2 Q2 Q2 26% 27% 25% 26% 27% H1 H1 H1 H1 H1 ~50% ~49% ~49% ~52% ~48% Q1 Q1 Q1 Q1 Q1 24% 26% 23% 22% 22% FY19 FY20 FY21 FY22
Slide 18: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) | 18
Slide 19: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) | 19
Slide 20: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | 20
Slide 21: Reconciliation of Reported and Organic Net Sales
RECONCILIATION OF REPORTED AND ORGANIC NET SALES (in millions) (unaudited) For periods of acquisition, we define organic net sales as current period reported net sales less net sales of products of acquired businesses reported for the current period, as appropriate. For periods of divestiture, we de
Slide 22: Supplemental Shipment and Depletion Information
SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION (in millions) (unaudited) | 22
Slide 23: Summarized Segment Information
SUMMARIZED SEGMENT 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 incen
Slide 24: Reconciliations of GAAP to Non-GAAP Financial Measures
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 evalua
Slide 25: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
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: | 25
Slide 26: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) | 26
Slide 27: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (in millions, except per share data) (unaudited) | 27
Slide 28: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (in millions, except per share data) (unaudited) | 28
Slide 29: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (in millions, except per share data) (unaudited) | 29
Slide 30: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (in millions, except per share data) (unaudited) | 30
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