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STZ Latest Report

Earnings AnalystMonday, Jan 13, 2025 9:15 am ET

1min read

CEG -- STZ --

Performance Review

As of November 30, 2024, the operating revenue of the Constellation Brands was $2.464 billion, a decrease of 0.11% compared to $2.471 billion in the same period of 2023. This change indicates challenges in the company's operating revenue, possibly related to changes in market demand, product competitiveness, or cost structure.

Key Financial Data

1. Sales costs slightly decreased to $1.18 billion in 2024 from $1.20 billion in 2023, although improved, still exerting pressure on revenue, possibly affecting gross profit.

2. Gross profit margin slightly increased from $1.271 billion in 2023 to $1.284 billion in 2024, showing the company's efforts in cost control or product portfolio optimization.

3. Marketing expenses increased to $491 million, up from $474 million in the previous year, possibly eroding profits and affecting overall operating revenue.

4. Changes in market environment, including macroeconomics, intensified industry competition, and shifting consumer preferences, may lead to a failure in revenue growth.

Peer Comparison

1. Industry-wide analysis: The overall demand for the beverage industry fluctuates, affected by rising raw material costs and changes in consumer spending, and the slight decrease in operating revenue reflects the overall pressure in the industry.

2. Peer evaluation analysis: The decrease in operating revenue of the Constellation Brands is relatively small, indicating its relatively strong market competitiveness, but still needs to strengthen market strategies to enhance revenue.

Summary

The Constellation Brands faced a challenge of a slight decrease in operating revenue in 2024, although gross profit margin improved, cost pressure and increased marketing expenses may affect future profitability. The overall intensified competition and changing consumer preferences also added uncertainty.

Opportunities

1. Expanding the low-alcohol and non-alcoholic beverage market to attract new consumer groups.

2. Improving gross margin through optimizing product mix to further enhance financial performance.

3. Adjusting marketing strategies based on market research results to enhance brand awareness and consumer loyalty.

Risks

1. Persistently rising raw material costs may put pressure on profits.

2. Intensified competition may lead to a decline in market share.

3. Rapidly changing consumer preferences may affect product sales and revenue growth.

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