Constellation Brands (STZ) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 14, 2026 astatine 12:14 PM CDT 36 min read

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Oct. 3, 2024 astatine 10:30 a.m. ET

• Chief Executive Officer — Bill Newlands

• Executive Vice President and Chief Financial Officer — Garth Hankinson

Bill Newlands: Thanks, Joe, and invited to our Q2 fiscal 2025 net call. As usual, I'd similar to commencement with a fewer cardinal highlights for the quarter. First, portion the existent macroeconomic backdrop weighed connected request for beverage intoxicant and, much broadly, crossed user packaged goods, we proceed to present beardown show successful the marketplace driven by our consumer-centric strategy and thoughtful attack to marque building. At a full institution level, successful Circana tracked channels implicit the 12 weeks ending September 1, we held the fig 1 spot for some dollar income maturation and stock gains wrong each beverage alcohol.

And much notably, we erstwhile again achieved dollar income maturation outpacing the full CPG assemblage arsenic we continued to physique connected our way grounds of implicit a decennary arsenic a CPG maturation leader. Second, our Beer concern remained the wide victor crossed the full beverage industry, having importantly outperformed successful dollar income maturation and, of course, maintained its starring share-gaining presumption successful the U.S. brew category. Third, and continuing with our Beer business, we delivered different 4th of important borderline expansion, supported by disciplined operational and fiscal management.

Importantly, our outgo savings and operational ratio initiatives are delivering important incremental benefits for our Beer concern beyond what we had anticipated astatine the commencement of fiscal 2025, which are present enabling incremental selling investments successful our largest brew brands arsenic of Q3. Fourth, our relentless absorption connected winning successful the marketplace, delivering top-tier maturation and driving efficiencies supported different 4th of double-digit summation successful comparable EPS successful enactment with our afloat twelvemonth outlook. Our beardown net show and, successful turn, important currency procreation enabled america to execute a pivotal milestone of our superior allocation priorities, having reached a 2.9 nett leverage ratio connected a comparable ground successful Q2, somewhat beneath our approximate 3 times target.

And arsenic important, accordant with those aforesaid priorities, we besides returned astir $250 cardinal of currency to shareholders done stock repurchases successful Q2, bringing our full year-to-date currency returns done repurchases to astir $450 million, portion continuing to wage our dividend and beforehand our brewery investments successful our Beer business. All in, arsenic we noted a fewer weeks ago, portion ongoing macroeconomic headwinds, peculiarly rising employment, person led to a caller deceleration successful the complaint of maturation of user request for our products, we stay connected way to present different coagulated fiscal twelvemonth and proceed to make worth for our shareholders. With that, let's crook much afloat to our Beer concern performance.