Company profile

Ticker
STZ
Exchange
CEO
William A. Newlands
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
Former names
Canandaigua Brands Inc, Canandaigua Wine Co Inc, Constellation Brands Inc
SEC CIK
IRS number
160716709

STZ stock data

(
)

Calendar

3 Oct 19
23 Oct 19
1 Mar 20

News

Company financial data Financial data

Quarter (USD) Aug 19 May 19 Feb 19 Nov 18
Revenue 2.57B 2.28B 1.97B 2.16B
Net income -525.2M -245.4M 1.24B 303.1M
Net profit margin -20.41% -10.75% 62.98% 14.03%
Operating income 719.5M 622.7M 465.3M 556.5M
Net change in cash -17.4M 5.1M -37M -75.5M
Cash on hand 81.3M 98.7M 93.6M 130.6M
Cost of revenue 1.16B 1.07B 903.7M 1B
Annual (USD) Feb 19 Feb 18 Feb 17 Feb 16
Revenue 8.88B 8.32B 8.05B
Net income 3.44B 2.3B 1.53B 1.05B
Net profit margin 38.67% 27.68% 18.99%
Operating income 2.41B 2.28B 2.39B 1.77B
Net change in cash 3.3M -87.1M 94.3M -27M
Cash on hand 93.6M 90.3M 177.4M 83.1M
Cost of revenue 4.04B 3.77B 3.8B 3.61B

Financial data from company earnings reports

Financial report summary

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Risks
  • International operations, worldwide and domestic economic trends and financial market conditions, geopolitical uncertainty, or changes to international trade agreements and tariffs, import and excise duties, other taxes, or other governmental rules and regulations
  • Dependence on limited facilities for production of our Mexican beer brands, and expansion and construction issues
  • Operational disruptions or catastrophic loss to breweries, wineries, other production facilities or distribution systems
  • Supply of quality water, agricultural and other raw materials, certain raw materials and packaging materials purchased under short-term supply contracts, limited group of suppliers of glass bottles
  • Reliance on wholesale distributors, major retailers and government agencies
  • Reliance upon complex information systems and third party global networks, cyber-attacks, and design and implementation of our new global enterprise resource planning system (“ERP”)
  • Contamination and degradation of product quality from diseases, pests and weather conditions
  • Climate change and environmental regulatory compliance
  • Cannabis is currently illegal under U.S. federal law and in other jurisdictions; we do not control Canopy’s business or operations
  • Potential decline in the consumption of products we sell; dependence on sales of our Mexican beer brands
  • Acquisition, divestiture, investment, and new product development strategies
  • Sale of a portion of our wine and spirits business
  • Our Canopy investments are dependent upon an emerging market and legal sales of cannabis products
  • Dependence upon trademarks and proprietary rights, failure to protect our intellectual property rights
  • Intangible assets, such as goodwill and trademarks
  • Changes to tax laws, fluctuations in our effective tax rate, accounting for tax positions and the resolution of tax disputes, and changes to accounting standards, elections or assertions
  • Securities measured at fair value
  • Canopy’s Corporate Governance
  • Class action or other litigation relating to abuse of our products, the misuse of our products, product liability, or marketing or sales practices
  • Control by the Sands Family
Management Discussion
  • The increase in Beer net sales is primarily due to $85.4 million of volume growth within our Mexican beer portfolio, which benefited from continued consumer demand, increased marketing spend, and new product introductions and a $37.9 million favorable impact from pricing in select markets within our Mexican beer portfolio. The increase was partially offset by a decline in craft beer net sales. The shipment timing benefit that occurred at the end of Fiscal 2019 partially reversed in Second Quarter 2020.
  • The decrease in Wine and Spirits net sales is primarily due to a $70.1 million decline in branded wine and spirits volume. The decrease in volume is partially attributable to timing as shipment volumes were accelerated for Second Quarter 2019 in advance of then expected continuing logistic and transportation constraints. The Wine and Spirits Second Quarter 2020 results have been negatively impacted by transition activities with distributors who are repositioning for ownership of brands upon closing the Wine and Spirits Transaction and the Black Velvet Transaction.
  • Our ownership interest in Canopy allows us to exercise significant influence, but not control, and, therefore, we account for our investment in Canopy under the equity method. Amounts included for the Canopy segment represent 100% of Canopy’s reported results on a two-month lag, prepared in accordance with U.S. GAAP, and converted from Canadian dollars to U.S. dollars. Although we own less than 100% of the outstanding shares of Canopy, 100% of the Canopy results are included and subsequently eliminated in order to reconcile to our consolidated financial statements. See “Income (Loss) from Unconsolidated Investments” below for a discussion of Canopy’s net sales, gross profit, selling, general, and administrative expenses, and operating income (loss).
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: al, Ambiente, assigned, blend, cancellation, Carlo, choose, classified, critical, damage, de, degree, extrapolation, Fall, history, Industria, inherent, input, inspection, interpolation, IVC, judgment, led, lesser, likelihood, Monte, MXN, notification, peer, penalty, portrayal, Procuraduria, PROPAEC, recordkeeping, recoverable, relevant, remediation, repayment, repositioning, rest, semiannually, slightly, smoke, subset, sustained, taxable, Velvet, Vidriera, VWAP, wastewater, whisky, winery, worth, Zaragoza
Removed: depletion, domestic, excise, export, Italy