Slide 1: First Quarter Fiscal Year 2025 Financial Results
FIRST QUARTER FISCAL YEAR 2025 FINANCIAL RESULTS July 3, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that are based on certain assumptions, estimates, expectations, plans, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, our forward-looking statements contained in this presentation are also subject to the risk, uncertainty, and possible variance
Slide 4: Use of Non-GAAP Financial Measures, Disclaimers and Defined Terms
USE OF NON-GAAP FINANCIAL MEASURES, DISCLAIMERS, CAUTION REGARDING OUTDATED MATERIAL, AND LOCATION OF DEFINED TERMS This presentation may contain non-GAAP financial measures.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 us
Slide 5: First Quarter Fiscal Year 2025 Financial Takeaways
FIRST QUARTER FISCAL YEAR 2025 FINANCIAL TAKEAWAYS Beer Business 1 High-single digit net sales growth and double-digit operating income growth 260bps operating margin expansion Continues to expect net sales growth of +7-9% and operating income growth of +10-12% for FY25 Wine and Spirits Business 2 M
Slide 6: Delivering Against Our Strategic Initiatives in Fiscal Year 2025
DELIVERING AGAINST OUR STRATEGIC INITIATIVES IN FISCAL YEAR 2025 DEVELOP DEPLOY CAPITAL EMPOWER OPERATE IN A WAY CONTINUE TO BUILD CONSUMER-LED IN-LINE WITH ENTERPRISE TO THAT IS GOOD FOR POWERFUL BRANDS INNOVATIONS DISCIPLINED AND ACHIEVE BEST IN BUSINESS AND GOOD THAT PEOPLE LOVE ALIGNED WITH BALA
Slide 7: First Quarter Fiscal Year 2025 Financial Summary Tables
FIRST QUARTER FISCAL YEAR 2025 FINANCIAL SUMMARY TABLES Operating Net Income (Loss) Adjusted ENTERPRISE Net Sales Income (Loss) Attributable to CBI EBIT EPS First Quarter Fiscal Year 2025 | In millions, except per share data Reported $2,662 $942 $877 $1,024 $4.78 % Change 6% 23% NM 193% NM Comparabl
Slide 8: Net Sales: Q1 FY25 vs Q1 FY24 Results
NET SALES Q1 FY25 VS Q1 FY24 RESULTS Q1 FY25 $2.7B ENTERPRISE VS Q1 FY24 +6% Beer Business Wine & Spirits Business $416 $17 $2,273 $389 $157 $(24) $(4) $ MILLIONS $2,099 Q1 FY24 Volume Price / 1 Q1 FY25 Q1 FY24 Volume Price / Mix Q1 FY25 Mix / Other Note: Totals may not sum due to rounding 1 Other i
Slide 9: Operating Income: Q1 FY25 vs Q1 FY24 Results
OPERATING INCOME Q1 FY25 VS Q1 FY24 RESULTS ENTERPRISE Q1 FY25 $942M 1 2 VS Q1 FY24 +23% Beer Business Wine & Spirits Business $106 $14 $9 $2 $923 $798 $(5) Other MKTG. SG&A 8.4% of 4.4% of $ MILLIONS Net Sales Net Sales $79 Other $59 MKTG. SG&A $(12) 10.5% of 17.5% of Net Sales Net Sales $— $5 $(13
Slide 10: Net Sales: FY25 Outlook vs FY24 Results
NET SALES FY25 OUTLOOK VS FY24 RESULTS ENTERPRISE 6% to 7% Growth Beer Business Wine and Spirits Business Price Total YoY Per 1-2% Total YoY Algorithm +7% to +9% Per +MSD% Algorithm $ MILLIONS Total YoY Total YoY –MSD% +MSD% (0.5)% to +0.5% $1,799 $8,163 FY24 Volume Price / Mix FY25 FY24 Volume Pric
Slide 11: Operating Income: FY25 Outlook vs FY24 Results
OPERATING INCOME FY25 OUTLOOK VS FY24 RESULTS +10% to +12% REPORTED1 ENTERPRISE +8% to +10% COMPARABLE 1 Beer Business Wine and Spirits Business ~$(20) $399 +10% $ MILLIONS to (11)% +12% to (9)% Total YoY ~9% of Further ~8.5% of Just under -MSD to Net Sales ~16% of details on Net Sales 5% of Net -HS
Slide 12: Beer Business Other COGS Detail
BEER BUSINESS OTHER COGS DETAIL FY25 Outlook Beer Business Other COGS % Change YoY Share of Total COGS (absolute basis) Packaging & Raw Materials ~55-60% +MSD to +HSD Logistics ~20% +MSD Labor & Overhead ~15% +HT 12
Slide 13: First Quarter Fiscal Year 2025 Results & Full Year Outlook
FIRST QUARTER FISCAL YEAR 2025 RESULTS & FULL YEAR OUTLOOK (% CHANGE YoY) Q1 FY25 Results FY25 Outlook Other FY25 Outlook Considerations Enterprise $2.7B | +6% Enterprise +6% to +7% Beer $2B | +8% Beer +7% to +9% Beer ~55% of volumes expected in H1 Net Sales W&S $389M | (7%) W&S (0.5)% to 0.5% W&S ~
Slide 14: Appendix
Constellati
Slide 15: Defined Terms
DEFINED TERMS
Slide 16: 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 17: Shipment and Depletion Historical Cadence
SHIPMENT AND DEPLETION HISTORICAL CADENCE
Slide 18: Beer Business Historical Shipment Volume Cadence
BEER BUSINESS HISTORICAL SHIPMENT VOLUME CADENCE H1 H1 H1 56% H1 H2 51% 55% H2 H1 H2 55% 50% H2 H2 44% 50% 49% Q2 45% Q2 45% Q2 Q2 Q1 30% Q2 Q3 Q3 Q1 Q1 28% 29% Q3 29% 26% Q3 Q1 27% 27% Q4 Q1 26% Q4 26% 25% 26% Q3 Q4 Q4 24% Q4 23% 23% 22% 23% 23% 21% 20% 21% FY20 FY21 FY22 FY23 FY24 Note: Totals may
Slide 19: Beer Business Historical Depletion Volume Cadence
BEER BUSINESS HISTORICAL DEPLETION VOLUME CADENCE H1 H1 H1 H1 H1 55% 54% 54% 54% 54% H2 H2 H2 H2 H2 45% 46% 46% 46% 46% Q2 Q2 Q2 Q2 Q2 30% Q1 Q3 Q1 29% Q3 Q1 29% Q3 Q1 29% Q3 Q1 29% Q3 25% 24% Q4 25% 25% Q4 25% 25% Q4 25% 25% Q4 25% 25% Q4 21% 21% 21% 21% 21% FY20 FY21 FY22 FY23 FY24 Note: Totals ma
Slide 20: Wine and Spirits Business Historical Shipment Volume Cadence
WINE AND SPIRITS BUSINESS HISTORICAL SHIPMENT VOLUME CADENCE H1 H2 H2 H2 H1 H2 50% H1 53% H1 H2 H1 52% 48% 50% 50% 50% 50% 50% 47% Q3 Q2 Q3 Q4 Q2 Q4 Q2 29% Q1 Q3 Q3 Q1 Q3 Q1 Q2 Q1 Q2 Q4 27% 26% 26% 27% 26% 27% 26% 26% Q1 25% 25% Q4 25% 25% 23% 24% 24% Q4 24% 21% 22% 22% FY20 FY21 FY22 FY23 FY24 Note
Slide 21: Wine and Spirits Business Historical Depletion Volume Cadence
WINE AND SPIRITS BUSINESS HISTORICAL DEPLETION VOLUME CADENCE H2 H1 H2 H1 H1 H2 H1 H1 H2 H2 51% 52% 48% 50% 51% 49% 49% 48% 52% 50% Q4 Q3 Q4 Q2 Q2 Q2 Q1 Q2 Q2 Q3 Q4 Q4 Q1 Q3 27% 27% Q3 Q1 Q3 26% 26% 27% Q1 26% 25% 27% Q1 26% 27% 24% 25% 24% Q4 23% 24% 24% 24% 25% 21% 22% FY20 FY21 FY22 FY23 FY24 Not
Slide 22: Financial Information
FINANCIAL INFORMATION
Slide 23: Condensed Consolidated Balance Sheets
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) May 31, February 29, 2024 2024 ASSETS Current assets: Cash and cash equivalents $ 73.8 $ 152.4 Accounts receivable 893.9 832.8 Inventories 2,127.0 2,078.3 Prepaid expenses and other 733.7 666.
Slide 24: Consolidated Statements of Operations
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) Three Months Ended May 31, May 31, 2024 2023 Sales $ 2,860.7 $ 2,699.5 Excise taxes (198.9) (184.6) Net sales 2,661.8 2,514.9 Cost of product sold (1,258.0) (1,257.1) Gr
Slide 25: Consolidated Statements of Cash Flows
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) Three Months Ended May 31, May 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 892.8 $ 139.2 Adjustments to reconcile net income (loss) to net cash provided by (used in)
Slide 26: Consolidated Statements of Cash Flows
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) Three Months Ended May 31, May 31, 2024 2023 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt — 744.8 Principal payments of long-term debt (552.2) (502.5) Net proc
Slide 27: Summarized Segment, Unconsolidated Investments, and D&A Information
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES SUMMARIZED SEGMENT, INCOME (LOSS) FROM UNCONSOLIDATED INVESTMENTS, AND DEPRECIATION AND AMORTIZATION INFORMATION (in millions) (unaudited) Management excludes items that affect comparability from its evaluation of the results of each operating segment as t
Slide 28: Supplemental Shipment and Depletion Information
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION (in millions) (unaudited) Three Months Ended May 31, May 31, Percent 2024 2023 Change Beer (branded product, 24-pack, 12-ounce case equivalents) Shipments 115.1 107.0 7.6% (1) (2) Depletions 6.4% Wine and Spi
Slide 29: Reconciliations of GAAP to Non-GAAP Financial Measures
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES 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 provid
Slide 30: Reconciliations of GAAP to Non-GAAP Financial Measures (continued)
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES 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, 202
Slide 31: Reconciliations of GAAP to Non-GAAP Financial Measures (continued)
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited) Comparable adjustments, Income (loss) from unconsolidated investments Primarily includes the following: Three Months Ended May 31, May 31, 2
Slide 32: Reconciliations of GAAP to Non-GAAP Financial Measures (continued)
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES 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”) Non-GAAP Canopy EIE financial measures for the three months ended May
Slide 33: Reconciliations of GAAP to Non-GAAP Financial Measures (continued)
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited) Three Months Ended May 31, 2024 May 31, 2023 Income (loss) (Provision for) Income (loss) (Provision for) before income benefit from Effectiv
Slide 34: Reconciliations of GAAP to Non-GAAP Financial Measures (continued)
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited) EPS Guidance Actual for the Year Ended Range for the Year Ending February February 29, 28, 2025 2024 Forecasted EPS (GAAP) $ 14.63 $ 14.63 $
Slide 35: Reconciliations of GAAP to Non-GAAP Financial Measures (continued)
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES 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 provi