Justin Sullivan
Constellation Brands (NYSE:STZ) has approved an additional $2 billion stock buyback and provided updates on its Beer and Wine & Spirits segments at its 2023 Investor Day event.
“Strong outlooks in both the Beer and Wine & Spirits Business give the company confidence to aim to deliver double-digit diluted EPS growth (excluding Canopy EIE) as part of its medium-term algorithm,” Constellation said in a statement.
The company said Thursday it expects ~7-9% annual net sales growth and operating margins of ~39-40% for its Beer business over the medium term, mainly driven by strong volume.
Growth in Beer business will support an investment plan for brewing capacity expansions to 18 million hectoliters from 2024 through 2028 and reduce capital spending by $1 billion, Constellation said.
For the Wine & Spirits business, it anticipates sequential improvement in the top-line and profitability, reaching ~1-3% net sales growth and ~25-26% operating margins over the medium term.
The company said it expects generating a cumulative operating cash flow of $15–17 billion and $10–12 billion of FCF from 2024 to 2028.
Press Release.
Shares +0.8% at $235.23.
