Constellation Brands (STZ) 10-K Summary — Year Ended Feb 29, 2024
Revenue increased compared to the prior year, and the company maintained positive operating income and cash flow. The company faces risks from inflation, supply chain disruptions, and unfavorable trends in its wine segment.
Key takeaway
Year ended Feb 29, 2024 · FY2026 10-K
Revenue increased compared to the prior year, and the company maintained positive operating income and cash flow. The company faces risks from inflation, supply chain disruptions, and unfavorable trends in its wine segment.
Financial snapshot
Selected annual figures reported with the filing, shown separately from the narrative summary.
Annual revenue
$10B
Revenue reported for the fiscal year.
Operating income
$3.2B
Income from operations reported for the year.
Net income
$1.7B
Net income reported for the year.
Operating cash flow
$2.8B
Cash generated by operating activities.
Annual revenue trend
Reported annual revenue and its change from the preceding fiscal year.
| Period ended | Revenue | Year-over-year change |
|---|---|---|
| Feb 28, 2022 | $8.8B | n/a |
| Feb 28, 2023 | $9.5B | +7.2% |
| Feb 29, 2024 | $10B | +5.4% |
Business overview
Constellation Brands is a beverage alcohol company with a focus on beer, wine, and spirits. The company is undertaking beer expansion and optimization activities, including construction at its Mexicali Brewery. It also manages a portfolio of wine and spirits brands.
Financial performance
Revenue grew compared to the prior year. The company reported positive operating income, net income, and operating cash flow. These figures reflect the financial results for the period.
Material risks
Key risks include inflationary pressures and reductions in consumer discretionary income, global supply chain disruptions, and unfavorable trends in the wine market. The company also faces potential impacts from climate-related severe weather events and changes in laws and regulations.
Liquidity and capital
The company plans to allocate capital to beer expansion projects, including construction and optimization. It also maintains a share repurchase program and pays dividends, while targeting a specific net leverage ratio.
What to watch
Investors should monitor the progress of beer expansion and optimization activities, including capital expenditures and timelines.