Constellation Brands Cites Balance Sheet Strength in Covid-19 Prep
April 03 2020 - 08:35AM
Dow Jones News
By Matt Grossman
Constellation Brands Inc. said Friday that it has reduced debt
and expects to add cash to its balance sheet as it faces the
Covid-19 pandemic.
The Victor, N.Y.-based company, which owns alcoholic-beverage
brands including Corona beer, declined to give guidance for its
2021 fiscal year, citing uncertainty from the virus.
"Our strong performance drove record cash-flow results which we
used to reduce debt to our targeted leverage range," Chief
Financial Officer Garth Hankinson said. The company's total
liabilities fell by more than a quarter in its 2020 fiscal
year.
Mr. Hankinson said the company has significant capacity from a
$2 billion revolving credit facility. "We plan to carefully manage
our debt position over the next 24 months," he said.
The company expects to receive $850 million in cash from its
sale of a portion of its wine-and-spirits business to E. & J.
Gallo Winery, he said. The deal is expected to close at the end of
the fiscal first quarter.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
April 03, 2020 08:20 ET (12:20 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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