Constellation Brands reported Q2 FY2025 net sales increased 3% to $2.92 billion, driven by 6% growth in Beer segment sales to $2.53 billion on 4.6% higher shipment volumes and favorable pricing. However, the company recorded a $2.25 billion goodwill impairment charge in its Wine and Spirits segment due to declining mainstream wine market trends, resulting in a net loss of $1.2 billion.The Beer segment operating income rose 13% to $1.08 billion, benefiting from cost savings initiatives, volume growth and favorable pricing. Wine and Spirits segment sales declined 12% to $388.7 million due to lower shipment volumes and unfavorable product mix, with operating income down 13% to $70.5 million. The segment continues to face headwinds from mainstream wine market weakness and retailer inventory destocking.The company maintained strong cash flow with $1.87 billion provided by operating activities in the first half. Management reaffirmed focus on premiumization and efficiency initiatives while executing Mexico beer capacity expansion projects. The company repurchased $449.2 million of shares during the first half and declared a quarterly dividend of $1.01 per Class A share.

Constellation Brands reported Q2 FY2025 net sales increased 3% to $2.92 billion, driven by 6% growth in Beer segment sales to $2.53 billion on 4.6% higher shipment volumes and favorable pricing. However, the company recorded a $2.25 billion goodwill impairment charge in its Wine and Spirits segment due to declining mainstream wine market trends, resulting in a net loss of $1.2 billion.The Beer segment operating income rose 13% to $1.08 billion, benefiting from cost savings initiatives, volume growth and favorable pricing. Wine and Spirits segment sales declined 12% to $388.7 million due to lower shipment volumes and unfavorable product mix, with operating income down 13% to $70.5 million. The segment continues to face headwinds from mainstream wine market weakness and retailer inventory destocking.The company maintained strong cash flow with $1.87 billion provided by operating activities in the first half. Management reaffirmed focus on premiumization and efficiency initiatives while executing Mexico beer capacity expansion projects. The company repurchased $449.2 million of shares during the first half and declared a quarterly dividend of $1.01 per Class A share.