Constellation Brands Q1 Earnings Top Estimates; Plans To Eliminate Class B Common Stock

Constellation Brands Inc STZ reported first-quarter FY23 growth sales of 17% year-on-year to $2.4 billion, beating the consensus of $2.16 billion.
Net sales for the Beer segment grew 21% Y/Y to $1.89 billion, and Wine and Spirits rose 2% Y/Y to $465 million.
Shipment volume for Beer increased 17.3%, while Wine and Spirits climbed 1.5%.
Gross profit of $1.25 billion rose 12.1% Y/Y, while gross margin of 53.1% contracted by 210 basis points. Operating margin for the quarter was 34.5%.
Comparable EPS of $2.66 beat the consensus of $2.53. Comparable EPS, excluding Canopy equity losses, was $2.90.
The company generated an operating cash flow of $758 million, a free cash flow of $562 million, and ended the quarter with $101.8 million in cash and equivalents.
Constellation's board declared a quarterly cash dividend of $0.80 per share of Class A Common Stock and $0.72 per share of Class B Common Stock, payable on August 24, 2022, to stockholders of record on August 10, 2022.
Constellation board has approved and will recommend to shareholders for approval a proposal to eliminate the company's Class B common stock.
Robert and Richard Sands, who currently serve as Executive Chairman and Executive Vice Chairman, respectively, will retire from their employment. Robert Sands will become Non-Executive Chairman, and Richard Sands will continue as a board member.
Sands Family will continue to be Constellation's largest shareholder following the completion of the reclassification.
Guidance: Constellation affirmed FY23 comparable basis EPS outlook of $11.20 - $11.50, above the consensus of $11.06.
Price Action: STZ shares are trading lower by 4.45% at $232.79 on the last check Thursday.
Photo Via Company

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga