Constellation Brands, Inc. has announced its fiscal year 2025 financial highlights, revealing a reported net sales of $10,209 million, reflecting a 2% increase from the comparable period. Operating income saw a significant 89% decrease, landing at $355 million, while net income attributable to CBI plummeted by 105% to $(81) million. Adjusted earnings before interest and taxes also experienced an 88% decline, reaching $329 million, while diluted net income per share attributable to CBI fell by 105% to $(0.45).
For the fourth quarter of fiscal year 2025, reported net sales were $2,164 million, a 1% change from the comparable period. Operating income saw a notable 124% decrease, amounting to $(150) million, while net income attributable to CBI tumbled by 196% to $(375) million. Adjusted earnings before interest and taxes experienced a 141% decline, reaching $(242) million, and diluted net income per share attributable to CBI fell by 198% to $(2.09).
In terms of the beer business, net sales grew by approximately 5% supported by shipment volume growth of over 3%, with depletions growing nearly 3%. The beer business also achieved a 180 basis points increase in operating margin, reaching 39.7%. On the other hand, the wine and spirits organic net sales declined by 6% and operating margin decreased by 270 basis points, landing at 19.5%.
Looking ahead, the company has issued its fiscal 2026 outlook, estimating reported EPS of $12.33 * $12.63 and comparable EPS of $12.60 * $12.90. The enterprise organic net sales growth is projected to range from a decline of 2% to an increase of 1%, with beer net sales growth estimated at 0 * 3% and wine and spirits organic net sales projected to decline by 17 * 20%.
In addition, the company declared a quarterly cash dividend of $1.02 per share of Class A common stock, payable on May 15, 2025, to stockholders of record as of the close of business on April 29, 2025.
Constellation Brands, Inc. has also provided an updated outlook for fiscal 2027 and fiscal 2028, anticipating a new 3-year $4 billion share repurchase authorization, aligned with that period.
The beer business is expected to see an increase in capital expenditures, with the company expecting approximately $2 billion of capital expenditures primarily to continue the modular development of its third brewery site at Veracruz and other additions at existing facilities in Mexico. By the end of fiscal 2028, the company expects to increase its capacity in Mexico to approximately 55 million hectoliters to support the anticipated growth of its high-end beer brands. Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $183.91. For more information, read the company's full 8-K submission here.
