Constellation Brands (STZ) Q4 2023 Earnings Call Transcript

For the period ending February 28, 2023

April 6, 2023 10:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Constellation Brands’ Fourth Quarter and Full Year 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to, Joe Suarez, Vice President of Investor Relations. Thank you. You may begin.

Joe Suarez - VP, IR

Thank you, Darryl. Good morning, all, and welcome to Constellation Brands year-end fiscal 2023 conference call. I’m here this morning with our Bill Newlands, our CEO; and Garth Hankinson, our CFO.

As a reminder, reconciliations between the most directly comparable GAAP measures and any non-GAAP financial measures discussed on this call are included in our news release or otherwise available on the Company’s website at www.cbrands.com.

Please refer to the news release and Constellation’s SEC filings for risk factors, which may impact forward-looking statements made on this call. Following the call, we will also be making available in the Investors section of our company’s website a series of slides with key highlights of the prepared remarks shared by Bill and Garth in today’s call.

Before turning the call over to Bill, in line with prior quarters, I would like to ask that, we limit everyone to one question per person, which will help us end our call on-time. Thanks in advance. And now, here is Bill.

Bill Newlands - CEO

Thank you, Joe, and good morning, everyone.

I’m pleased to report that our team delivered another solid year of performance in fiscal ‘23, driving a 7% increase in net sales and a 3% increase in comparable operating income, despite elevated inflationary headwinds faced throughout the year. We delivered record net sales and comparable operating income of $9.5 billion and $3 billion, respectively. We were recognized as the number one growth leader among large CPG companies by IRI and Boston Consulting Group in calendar year ‘22. And we’re the only CPG company of scale in recent times to make their top 10 ranking for 10 consecutive years.

Our performance was driven by strong execution of our strategy, which centers on continuing to build powerful brands that people love; to introduce consumer led innovations that address emerging trends and consistently shape our portfolio for profitable growth; to deploy capital with discipline, while balancing priorities; and operate in a way that is both good for business and good for the world.