Constellation Brands — Income Statement, Cash Flows & Balance Sheet
Is Constellation Brands profitable?
Massive write-downs in the Wine and Spirits business erased what would otherwise have been a profitable year.
| Item | FY2024 | FY2025 | Change |
|---|---|---|---|
| Net sales ($M) | $9,961.8 | $10,208.7 | +$246.9 |
| Gross profit ($M) | $5,017.5 | $5,314.6 | +$297.1 |
| Gross margin | 50.4% | 52.1% | +1.7 pts |
| Goodwill & asset impairments ($M) | $0 | $(3,275.7) | — |
| Net income (loss) attributable to CBI ($M) | $1,727.4 | $(81.4) | -$1,808.8 |
Revenue grew modestly and gross margins actually improved, which tells a healthy underlying story. The reported net loss, however, is almost entirely explained by a massive, one-time, non-cash write-down of goodwill and other assets tied to the struggling Wine and Spirits business — not a deterioration in day-to-day operations.
On a comparable (non-GAAP) basis, core operating income grew solidly, driven by Beer.
| Segment (non-GAAP) | FY2024 | FY2025 | Change |
|---|---|---|---|
| Beer comparable operating income ($M) | $3,094.4 | $3,394.4 | +$300.0 |
| Wine & Spirits comparable operating income ($M) | $398.7 | $325.1 | $(73.6) |
| Total comparable operating income ($M) | $3,245.5 | $3,474.9 | +$229.4 |
Stripping out the impairments and other one-time items, the business generated meaningfully more operating profit than the prior year, with Beer picking up the slack as Wine and Spirits continued to soften.
Where does Constellation Brands's revenue come from?
Beer is the engine — it generates the overwhelming majority of revenue and profit.
| Segment | FY2024 Net Sales ($M) | FY2025 Net Sales ($M) | Change |
|---|---|---|---|
| Beer | $8,162.6 | $8,539.8 | +$377.2 (+4.6%) |
| Wine & Spirits | $1,799.2 | $1,668.9 | $(130.3) (-7.2%) |
| Total | $9,961.8 | $10,208.7 | +$246.9 (+2.5%) |
Beer — home to imported Mexican brands like Corona and Modelo — grew revenue and pushed its core operating margin to nearly 40%, while Wine and Spirits continued to shrink. The company is actively divesting mainstream wine brands, with a $900 million sale agreement signed after year-end, signalling a strategic retreat to focus almost entirely on Beer.
Does Constellation Brands generate cash?
Operating cash flow is strong and growing, funding both heavy investment and generous shareholder returns.
| Cash Flow Item | FY2024 ($M) | FY2025 ($M) | Change |
|---|---|---|---|
| Operating cash flow | $2,780.0 | $3,152.2 | +$372.2 |
| Capital expenditures | $(1,269.1) | $(1,214.1) | +$55.0 |
| Free cash flow (GAAP operating CF minus capex) | $1,510.9 | $1,938.1 | +$427.2 |
| Share repurchases | $(249.7) | $(1,123.8) | $(874.1) |
| Dividends paid | $(653.8) | $(731.8) | $(78.0) |
The underlying cash engine is healthy — free cash flow rose substantially — and the company deployed over $1.8 billion to shareholders through buybacks and dividends. The large increase in share repurchases reflects management's confidence and was partly funded by proceeds from the SVEDKA brand sale.
How strong is Constellation Brands's balance sheet?
Debt is high but being managed down; the goodwill write-downs have significantly reduced the asset base and book equity.
| Item | FY2024 ($M) | FY2025 ($M) | Change |
|---|---|---|---|
| Total long-term debt (incl. current portion) | $11,637.9 | $10,691.0 | $(946.9) |
| Goodwill | $7,980.3 | $5,126.8 | $(2,853.5) |
| Total stockholders' equity | $10,064.6 | $7,134.8 | $(2,929.8) |
| Cash & equivalents | $152.4 | $68.1 | $(84.3) |
Constellation Brands carries roughly $10.7 billion in long-term debt, which is a material obligation, though the company is gradually paying it down. The sharp drop in stockholders' equity is a direct consequence of the goodwill write-downs — accounting losses that reduce the book value of the business but don't affect cash. With nearly $1.4 billion of debt due within the next fiscal year and limited cash on hand, liquidity management and the expected ~$900 million wine divestiture proceeds will be worth watching.