Source: Dreamstime | Author: DeltaStock
Reading time: 2 minutes
The shares of the U.S.-based alcohol producer and distributor rose to a nearly three-month high last Thursday morning on the wings of strong sales figures and heightened consumer demand for its beer brands.
Financial performance for FY 2022
“Driven by a relentless focus on building brands consumers love, our business continues to gain momentum. Despite various headwinds, we extended our leadership position in the high-end of the U.S. beer market, our high-end wine and spirit brands continue to outpace the industry . . . [and] we continue to invest aggressively in our core business.”
Bill Newlands, President and CEO
Here’s how Constellation Brands did for the period:
– Total revenue: 6% year-over-year growth to $1.08 billion
– Earnings per share: 30% year-over-year growth to $2.37 per share vs. $2.15 expected
– Net sales: 8% year-over-year growth to $2.10 billion vs. $2.016 billion expected
– Beer segment: sales growth of 14% to $1.56 billion, which resulted in a 9.9% increase in shipment volumes and a 9.8% depletion of volume growth, with the beers Modelo Especial and Corona Extra being sold the most. Modelo Especial, in particular, did so well that it became the second most sold beer in the entire U.S.
– Wine and spirits segment: sales decreased 7% to $536.8 million in the fiscal fourth quarter, which led to weaker shipment volumes (18.1% less) and depletions (6.6% less). While the brands The Prisoner Brand Family, Kim Crawford and Meiomi were the key growth drivers in this segment, they were not enough to offset the losses
– Operating income and cash equivalents: for the period, operating income rose 17% to $658.9 million, while cash and cash equivalents reached $199.4 million
– Quarterly dividends hike: at its earnings call, Constellation Brands announced a quarterly cash dividend of $0.80 per share Class A and $0.72 per share Class B.
Financial outlook for FY 2023
“Our capital allocation strategy remains unchanged and includes a focus on maintaining an investment-grade rating, returning capital to shareholders through dividends and share repurchases, and investing in the growth of the business.”
Garth Hankinson, CFO
In the report, the company boasted that it had returned $2 billion to shareholders in stock repurchases and dividends in 2022 alone and that it is already on track to repurchase $500 million more worth of shares in Q1 2023 – yet another milestone towards achieving its $5 billion shareholder commitment. Here is what Constellation Brands expects performance-wise in 2023:
– Net sales: growth of 7-9% (beer segment)
– Operating income: growth of 2-4%
– Earnings per share: $11.20 – $11.50
– Operating cash flow: $2.6 – $2.8 billion
As Constellation Brands expands its reach further, it also anticipates a total capital expenditure of $5-$5.5 billion for the beer business between fiscal 2023 and 2026, starting with the construction of a new brewery in Southeast Mexico in Veracruz and capacity upgrades to some of its currently operating breweries.
Upcoming reports
See the full list of upcoming earnings reports for 11th – 16th April in the tables below.
Tuesday, 12th April 2022
| Country | Company | Fiscal period |
|---|---|---|
| United Kingdom | JD Sports Fashion PLC | Full Year 2022 |
| Germany | Evotec SE | Q4 2021 |
Wednesday, 13th April 2022
| Country | Company | Fiscal period |
|---|---|---|
| USA | Bed Bath & Beyond Inc | Q4 2021 |
| USA | BlackRock Inc | Q1 2022 |
| USA | JPMorgan Chase & Co | Q1 2022 |
| USA | Fastenal Co | Q1 2022 |
| United Kingdom | Tesco PLC | Full Year 2022 |
Thursday, 14th April 2022
| Country | Company | Fiscal period |
|---|---|---|
| USA | Progressive Corp | Report for March 2022 |
| USA | Citigroup Inc | Q1 2022 |
| USA | Rite Aid Corp | Q4 2022 |
| USA | PNC Financial Services Group Inc | Q1 2022 |
| USA | State Street Corp | Q1 2022 |
| USA | Goldman Sachs Group Inc | Q1 2022 |
| USA | Wells Fargo & Co | Q1 2022 |
| USA | UnitedHealth Group Inc | Q1 2022 |
| USA | US Bancorp | Q1 2022 |
| USA | Morgan Stanley | Q1 2022 |
| Taiwan | Taiwan Semiconductor Manufacturing Co Ltd | Q1 2022 |
| Sweden | Telefonaktiebolaget LM Ericsson | Q1 2022 |
Saturday, 16th April 2022
| Country | Company | Fiscal period |
|---|---|---|
| India | HDFC Bank Ltd | Q4 2022 |
***
Wish to trade on the global markets? Open a free practice account in Delta Trading or the popular MetaTrader 5 and test your best strategies in a real market environment, without risking real funds.
OR
