Constellation Brands, Inc., is a leading international producer and marketer of beer, wine, and spirits headquartered in Victor, New York. The company has a strong portfolio of brands, including Modelo, Corona, and premium wines like Meiomi and Kim Crawford.

In the third quarter of fiscal year 2025, Constellation Brands’ performance overall was relatively stable, with key figures demonstrating some growth in specific segments. The company generated enterprise net sales of $2.464 billion, unchanged compared to the prior year. However, the wine and spirits segment experienced a notable decline, with net sales dropping by 14% to $431.4 million, driven by a shipment volume decrease of 16.4%. Operating income from this segment also declined by 25% to $95.2 million.

In contrast, the beer business delivered a net sales increase of 3% to $2.032 billion, underpinned by a 1.6% growth in beer shipments and a 3.2% increase in depletions. Operating income from the beer segment rose by 2% to $769.9 million, though operating margin decreased by 60 basis points to 37.9%. The company noted a $40 million cost savings in the third quarter, contributing to its operating income performance despite a 10% increase in marketing expenses.

Looking at guidance adjustments, Constellation now expects fiscal year 2025 enterprise net sales growth to be in the range of 2% to 5%. The beer business anticipates net sales growth of 4% to 7% and operating income growth of 9% to 12%, while the wine and spirits segment anticipates a decline in net sales of 5% to 8% and operating income of 17% to 19%. The company’s revised comparable EPS forecast is set between $13.40 and $13.80.

Year-to-date, Constellation Brands has returned approximately $670 million to shareholders through share repurchases, alongside cash dividends totaling over $180 million. The firm also reported operating cash flow of $2.6 billion, marking a 9% increase from the previous year, and free cash flow of $1.6 billion, a 13% year-over-year increase.

Overall, Constellation Brands continues to navigate a dynamic market landscape, balancing growth in its beer segment with ongoing challenges in the wine and spirits business while maintaining its commitment to shareholder returns and operational efficiency.