Constellation Brands Cuts 2024 Profit Guidance Amid Sluggish Wine and Spirits Sales

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Constellation Brands ($NYSE:STZ), a leading producer and marketer of beer, wine, and spirits, recently announced that it has lowered its 2024 profit forecast due to sluggish sales of its wine and spirits. The company’s stock is listed on the New York Stock Exchange, and its portfolio includes big names such as Corona, Svedka Vodka, Robert Mondavi, Woodbridge by Robert Mondavi, and more. The decrease in wine and spirits sales has been attributed to a variety of factors.

Additionally, the company is facing increased competition from craft beer makers and other wine and spirits producers. Furthermore, Constellation Brands reports that the tariffs imposed by the US on certain imported wine and spirits is having a negative effect on sales. The company is currently taking steps to try to maximize its return while minimizing its losses. These steps include expanding their joint venture with Anheuser-Busch InBev, reducing operating costs, and focusing on long-term growth. While it remains to be seen how successful these measures will be in mitigating losses, Constellation Brands has made it clear that it will continue to focus on creating long-term value for shareholders.

Share Price

On Friday, CONSTELLATION BRANDS saw its stock open at $244.5 and close at $247.5, up by 2.1% from last closing price of 242.3. This change came amidst news that the company had cut its profit guidance for 2024 due to sluggish wine and spirits sales. While the outlook for the year is not ideal, CONSTELLATION BRANDS did not reveal the exact amount by which it has lowered its profit expectations. The company has yet to comment on the financial implications of its decision. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis

GoodWhale’s analysis of CONSTELLATION BRANDS‘s wellbeing has yielded interesting results. Through our Star Chart, we can see that CONSTELLATION BRANDS is strong in dividend and profitability, but weak in asset. Additionally, CONSTELLATION BRANDS has an impressive health score of 8/10, indicating that the company is capable to sustain future operations in times of crisis, considering its cashflows and debt. Based on our research, we have classified CONSTELLATION BRANDS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Such companies may be of interest to a number of investors, including value investors who seek out stocks with strong dividend history and profitability, as well as growth investors who may be interested in investing in a company with potential for further growth. More…

Peers

Constellation Brands Inc is one of the world’s leading producers and marketers of beer, wine, and spirits. The company has a portfolio of well-known brands that include Corona, Modelo, and Pacifico beers; Robert Mondavi, Kim Crawford, and Meiomi wines; and Svedka vodka. Constellation Brands competes with Heineken NV, Shanxi Xinghuacun Fen Wine Factory Co Ltd, and Vintage Wine Estates Inc in the global beer, wine, and spirits market.

– Heineken NV ($OTCPK:HEINY)

Heineken NV is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. As of 2022, Heineken NV had a market capitalization of 49.75 billion euros and a return on equity of 17.82%. The company brews and sells a variety of beer brands, including Heineken, Amstel, and Desperados. Heineken NV also has a diverse portfolio of non-alcoholic beverages, including sodas, juices, and waters. In addition to brewing and selling beverages, Heineken NV also owns a number of breweries and distributes a variety of beer brands.

– Shanxi Xinghuacun Fen Wine Factory Co Ltd ($SHSE:600809)

Shanxi Xinghuacun Fen Wine Factory Co Ltd is a Chinese company that specializes in the production of alcohol. The company has a market capitalization of 320.39 billion as of 2022 and a return on equity of 30.61%. The company’s products include wines, spirits, and other alcoholic beverages.

– Vintage Wine Estates Inc ($NASDAQ:VWE)

Vintage Wine Estates is a publicly traded wine company with a portfolio that includes 17 wine brands. The company’s brands are distributed in all 50 states and in more than 60 countries. Vintage Wine Estates is headquartered in Santa Rosa, California.

The company’s market cap is $180.14 million, and its ROE is 2.43%. Vintage Wine Estates is a leading wine company with a diversified portfolio of high-quality brands. The company’s wines are distributed in all 50 states and in more than 60 countries. Vintage Wine Estates is committed to producing superior wines that reflect the unique character of each vineyard and region.

Summary

Constellation Brands, a leading producer and marketer of beer, wine, and spirits, recently cut its 2024 profit guidance due to lagging sales. The company primarily blames a decrease in their wine and spirits sales in the US and Canada, which have decreased compared to last year. This has had a negative impact on their overall profits.

Investors should take note of this drop in revenue and the implications it may have on the company’s future financial outlook. Constellation Brands may need to restructure their product lines and marketing strategies in order to stay competitive and return to more profitable levels.