Stock Analysis on Net
Stock Analysis on Net

Constellation Brands Inc. (NYSE:STZ)

This company has been moved to the archive! The financial data has not been updated since January 5, 2023.

Common-Size Income Statement 

Constellation Brands Inc., common-size consolidated income statement

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12 months ended: Feb 28, 2022 Feb 28, 2021 Feb 29, 2020 Feb 28, 2019 Feb 28, 2018 Feb 28, 2017
Sales 108.03 108.60 109.22 109.47 109.78 109.96
Excise taxes -8.03 -8.60 -9.22 -9.47 -9.78 -9.96
Net sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of product sold -46.63 -48.16 -50.24 -49.73 -49.67 -51.86
Gross profit 53.37% 51.84% 49.76% 50.27% 50.33% 48.14%
Selling, general, and administrative expenses -19.40 -19.33 -19.44 -20.55 -20.21 -18.99
Impairment of brewery construction in progress -7.55 0.00 0.00 0.00 0.00 0.00
Impairment of assets held for sale 0.00 -0.28 -5.39 0.00 0.00 0.00
Gain on sale of business 0.02 0.16 0.89 0.00 0.00 3.58
Operating income 26.43% 32.40% 25.82% 29.72% 30.12% 32.73%
Income (loss) from unconsolidated investments -18.54 1.74 -31.98 25.89 6.42 0.37
Interest expense -4.04 -4.48 -5.14 -4.52 -4.38 -4.55
Loss on extinguishment of debt -0.33 -0.15 -0.03 -0.02 -1.28 0.00
Income (loss) before income taxes 3.52% 29.52% -11.33% 51.07% 30.89% 28.55%
(Provision for) benefit from income taxes -3.51 -5.93 11.59 -8.45 -0.16 -7.56
Net income 0.01% 23.58% 0.26% 42.62% 30.73% 20.99%
Net income attributable to noncontrolling interests -0.47 -0.39 -0.40 -0.29 -0.16 -0.06
Net income (loss) attributable to CBI -0.46% 23.19% -0.14% 42.33% 30.57% 20.94%

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

Sales and Taxes
Sales as a percentage of net sales demonstrated a gradual decline from 109.96% in 2017 to 108.03% in 2022. Correspondingly, excise taxes, which are reported as negative percentages, also trended downward from -9.96% to -8.03%. This indicates a reduction in the relative burden of excise taxes over time.
Cost of Product Sold and Gross Profit
The cost of product sold as a percentage of net sales decreased from -51.86% in 2017 to -46.63% in 2022, suggesting improved cost efficiency or changes in product mix favoring lower costs. Gross profit margins improved accordingly, increasing from 48.14% to 53.37%, reflecting enhanced profitability at the gross level.
Operating Expenses and One-Time Impairments
Selling, general, and administrative expenses fluctuated mildly but remained relatively stable around -19% to -20.5% of net sales during the period. Notably, in 2022, a substantial impairment related to brewery construction in progress was recorded at -7.55%, and impairments of assets held for sale were notable in 2020 and 2021 at -5.39% and -0.28%, respectively. These impediments impacted expense levels and operating income in those years.
Gains and Operating Income
Gains on sale of business were recorded in 2017 (3.58%) and smaller in subsequent years, diminishing to near negligible levels by 2022. Operating income as a percentage of net sales showed variability, with a peak of 32.73% in 2017, a low point at 25.82% in 2020 coinciding with asset impairments, a recovery to 32.4% in 2021, and a decline to 26.43% in 2022. This pattern may reflect the influence of non-recurring items and operational challenges.
Income from Unconsolidated Investments
There was considerable volatility in income (loss) from unconsolidated investments, with positive contributions in early years, peaking at 25.89% in 2019, followed by significant losses in 2020 (-31.98%) and 2022 (-18.54%). This volatility influenced overall profitability and contributed to fluctuations in net income.
Interest and Debt-related Expenses
Interest expense remained relatively stable, ranging between -4.04% and -5.14% of net sales without a clear upward or downward trend. Loss on extinguishment of debt was minimal but persistent throughout the period, with small negative values typically below -0.5%.
Income Tax Provision
The provision for income taxes displayed inconsistency, moving from a negative figure in 2017 (-7.56%) and near zero or positive values in some years, including a benefit of 11.59% in 2020. This irregular pattern indicates fluctuations in taxable income or tax rates influenced by operational results or one-time items.
Net Income and Attribution
Net income as a percentage of net sales showed a significant increase from 20.99% in 2017 to a high of 42.62% in 2019, followed by a sharp decline to near break-even at 0.26% in 2020, and fluctuating thereafter with 23.58% in 2021 and effectively zero in 2022. Net income attributable to the parent company followed a similar trajectory, underscoring the variability in profitability driven by operational and non-operational factors. Net income attributable to noncontrolling interests remained minimal but negative throughout the period.