Constellation Brands, Inc. · NYSE:STZ
Constellation Brands — Q1 2024 Earnings Presentation
27 slides from Constellation Brands's earnings presentation, Jun 30, 2023
Slide 1: Constellation Brands First Quarter Fiscal Year 2024 Financial Results
CONSTELLATION BRANDS FIRST QUARTER JUNE 30, 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Slide 4: Use of Non-GAAP Financial Measures, Disclaimer, Caution Regarding Outdated Material
USE OF NON-GAAP FINANCIAL MEASURES, DISCLAIMER, CAUTION REGARDING OUTDATED MATERIAL, AND LOCATION OF DEFINED TERMS This presentation may contain non-GAAP financial measures.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: First Quarter Fiscal Year 2024 Financial Highlights
FIRST 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 Q1 FY24 (1) | In millions, except
Slide 6: First Quarter Fiscal Year 2024 Key Takeaways
FIRST QUARTER FISCAL YEAR 2024 KEY TAKEAWAYS BEER BUSINESS DELIVERS DOUBLE-DIGIT NET SALES GROWTH AND MID SINGLE-DIGIT SHIPMENT AND DEPLETION GROWTH (1) WINE AND SPIRITS BUSINESS OUTPERFORMS HIGHER-END SEGMENT OF WINE CATEGORY IN U.S. TRACKED CHANNELS (2) COMPANY CONTINUES TO DEPLOY CAPITAL PER STAT
Slide 7: Delivering Against Our Strategic Initiatives in Fiscal Year 2024
DELIVERING AGAINST OUR STRATEGIC INITIATIVES IN FISCAL YEAR 2024 (1) Q1 FY24 DEPLETION GROWTH (DECLINE) • Modelo Especial: ~5% • Meiomi: ~(5)% 1 CONTINUE TO BUILD POWERFUL BRANDS THAT PEOPLE LOVE • Corona Extra: ~1% • Pacifico: ~15% • Kim Crawford: ~Flat • The Prisoner Wine Co.: ~(7)% • Modelo Chela
Slide 8: Beer Business Maintained Its Industry-Leading Performance
BEER BUSINESS MAINTAINED ITS INDUSTRY-LEADING PERFORMANCE Q1 FY24 vs Q1 FY23 RESULTS ($ IN MILLIONS) FY24 OUTLOOK vs FY23 RESULTS ($ IN MILLIONS) +7% to +9% Price Total YOY Per 1-2% Algorithm Total YOY Per +MSD% Algorithm Mktg. 9.5% of +5% Net Sales $(35) – to +7% $(40) $2,862 Further details on Tot
Slide 9: Beer Business Other COGS Affected by Inflationary Pressures
BEER BUSINESS OTHER COGS AFFECTED BY INFLATIONARY PRESSURES FY24 OUTLOOK BEER BUSINESS OTHER COGS Share % Change YOY IMPORT PORTION OF BEER BUSINESS (1) PACKAGING & RAW MATERIALS 55-60% +HSD (OF IMPORT PORTION TOTAL COGS) FREIGHT 20-25% +HSD (OF IMPORT PORTION TOTAL COGS) LABOR & OVERHEAD 10-15% +HT
Slide 10: Wine & Spirits Business Continued to Advance Its Strategy
WINE & SPIRITS BUSINESS CONTINUED TO ADVANCE ITS STRATEGY Q1 FY24 vs Q1 FY23 RESULTS ($ IN MILLIONS) FY24 OUTLOOK vs FY23 RESULTS ($ IN MILLIONS) -0.5% to +0.5% Total YOY Total YOY Net Sales of Flat to -LSD% +LSD% Net Sales of Brands Divested Brands Divested in Q3 FY23 in Q3 FY23 $(36) WINE WINE DIV
Slide 11: First Quarter Fiscal Year 2024 Results & Full Year Outlook
FIRST QUARTER FISCAL YEAR 2024 RESULTS & FULL YEAR OUTLOOK (% CHANGES YOY) Q1 FY24 RESULTS FY24 OUTLOOK OTHER FY24 OUTLOOK CONSIDERATIONS Net Sales Beer: $2.1B | +11% Beer: +7% to +9% Beer: ~55% of volumes expected in H1 W&S: $416M | (10%) Reported W&S: (0.5%) to +0.5% Organic (2) W&S: ~55% of volum
Slide 12: Appendix: Defined Terms & Additional Financial Information
APPENDIX DEFINED TERMS & ADDITIONAL 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: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) May 31, February 28, May 31, February 28, 2023 2023 2023 2023 ASSETS LIABILITIES AND STOCKHOLDER’S EQUITY Current assets: Current liabilities: Cash and cash equivalents $ 192.5 $ 133.5 Short-term borrowings $ 819.1 $ 1,165.3 Accounts re
Slide 15: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) Three Months Ended Three Months Ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 Net income (loss) per common share attributable to CBI: Sales $ 2,699.5 $ 2,540.7 Basic – Class A Common Stock $ 0.74 $ 2.0
Slide 16: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Three Months Ended (unaudited) Three Months Ended May 31, May 31, 2023 2022 May 31, May 31, CASH FLOWS FROM OPERATING ACTIVITIES 2023 2022 Net income (loss) $ 139.2 $ 399.3 Adjustments to reconcile net income (loss) to net cash provided by (used in
Slide 17: 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 18: Supplemental Shipment and Depletion Information
SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION (in millions) (unaudited) Three Months Ended May 31, May 31, Percent 2023 2022 Change Beer (branded product, 24-pack, 12-ounce case equivalents) Shipments 107.0 99.5 7.5% Depletions (1) 5.5% Wine and Spirits (branded product, 9-liter case equivalents)
Slide 19: 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 20: 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 21: 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: Three Months Ended May 31, May 31, Undesignated commodity derivative contracts 202
Slide 22: Reconciliations of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) Comparable adjustments, (Provision for) benefit from income taxes Other gains (losses) The effective tax rate applied to each comparable adjustment amount is generally based upon the Primarily includes the following: jurisdiction in
Slide 23: 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) Canopy Equity Earnings (Losses) and Related Activities (“Canopy EIE”) The measures that exclude all of our equity in the earnings (losses) of Canopy and related activities on a reporte
Slide 24: 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) Three Months Ended May 31, 2023 May 31, 2022 Income (loss) before (Provision for) benefit from Effective tax Income (loss) before (Provision for) benefit Effective tax income taxes inc
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) (1) Comparable adjustments include (2) Estimated for the Actual for the Year Actual for the Year Ended Year Ending Ended February 28, February 28, 2023 February 29, 2024 2023 (Income)
Slide 26: Free Cash Flow Guidance Reconciliation
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (in millions, except per share data) (unaudited) Free Cash Flow Guidance Free cash flow, as defined in the reconciliation below, is considered a liquidity measure and is considered to provide useful information to investors about the
Slide 27: Constellation Brands closing slide
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