Constellation Brands, Inc. has reported its second-quarter fiscal year 2025 financial highlights, showcasing some impressive figures and significant changes from the previous period. The beer business saw a solid mid-single-digit net sales growth, reaching $2.919 billion, a 3% increase from the same quarter the previous year. Operating income for the beer business also experienced substantial growth, reaching $1.090 billion, a 13% increase from the same quarter in fiscal year 2024. The net income attributable to Constellation Brands, Inc. for the beer business was $788 million, a 13% increase from the previous period. The company also reported adjusted earnings before interest and taxes of $1.093 billion, marking a 12% increase from the same quarter in the prior fiscal year.
In the beer business, the company achieved a 6% increase in net sales, primarily driven by a 4.6% rise in shipment volumes. Depletion volume had growth of 2.4%, including the impact of one less selling day. The beer business outperformed the total beer category in the U.S., with dollar sales and volume growth surpassing the category by 5.3% and 6.2% respectively, and the high-end segment by 3.8%. Operating margin increased by 270 basis points to 42.6%.
On the other hand, the wine and spirits business faced challenges, with a 12% decline in net sales, driven by a 9.8% decrease in shipment volumes. The operating income for this segment also experienced a decline of 13%. However, the craft spirits portfolio within the wine and spirits segment delivered depletion growth of 1.3%.
Looking ahead, the company updated its fiscal 2025 reported EPS outlook to $4.05 * $4.25 and affirmed the recently updated comparable EPS outlook of $13.60 * $13.80, including $449 million of shares repurchased through August 2024. The beer business continues to expect net sales growth of 6-8% and operating income growth outlook of 11-12% for fiscal 2025.
In terms of capital expansion, the company expects approximately $3 billion of capital expenditures from fiscal 2025 to fiscal 2028 to continue the development of modular additions at existing facilities in Mexico and its third brewery site at Veracruz.
Today the company's shares have moved -1.2% to a price of $252.61. If you want to know more, read the company's complete 8-K report here.
