Constellation Brands Q4 2019 Earnings Breakdown

by hyousef333

 

  • Beer Business Delivers Double-Digit Net Sales and Operating Income Growth for FY19
  • Company Generates Record Operating Cash Flow
  • Signs Agreement to Sell Portion of Wine & Spirits Business to E. & J. Gallo Winery
  • Achieves fiscal 2019 reported basis EPS of $17.57 and comparable basis EPS of $9.28, an increase of 53% and 7%, respectively
  • Generates record operating cash flow of more than $2.2 billion and $1.4 billion of free cash flow for fiscal 2019
  • Fiscal 2020 outlook, expects reported basis EPS of $8.47 – $8.77 and comparable basis EPS of $8.50 – $8.80
  • Projects fiscal 2020 operating cash flow target of approximately $2 billion and free cash flow projection of $1.1 – $1.2 billion
  • Repurchases 2.4 million shares of common stock for $504 million for fiscal 2019
  • Declares quarterly cash dividend of $0.75 per share Class A and $0.68 per share Class B common stock
  • Held gross margin of 54.4% in a rising cost environment
  • Operating margin decreased slightly to 39.3%, as favorable pricing was more than offset by higher marketing and transportation costs
  • Marketing as a percent of net sales increased 30 bps to 9.3% driven primarily by marketing initiatives
  • Q4 2019: Operating margin increased 60 basis points to 27.7%, from lower SG&A and favorable price were partially offset by higher COGS.
  • FY 2019: Shipment volume exceeded depletions volume, which is expected to reverse in first quarter fiscal 2020.
  • Board of Directors declared a quarterly cash dividend of $0.75 per share of Class A Common Stock and $0.68 per share of Class B Stock
  • 2020 Outlook: Beer: net sales and operating income growth 7 – 9%
  • 2020 Outlook: Wine and Spirits: net sales decline 25 – 30% and operating income decline 30 – 35%
  • 2020 Outlook: Operating cash flow: $1.9 – $2.1 billion
  • 2020 Outlook: Free cash flow: $1.1 – $1.2 billion
  • 2020 Outlook: Tax rate: approximately 17%

 

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