Name: Constellation Brands Inc. (NYSE:STZ) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Constellation Brands Inc., consolidated income statement

US$ in thousands

12 months ended:	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Sales	9,529,100)	9,355,700)	9,113,000)	8,884,300)	8,326,800)	8,061,600)
Excise taxes	(708,400)	(740,800)	(769,500)	(768,300)	(741,800)	(730,100)
Net sales	8,820,700)	8,614,900)	8,343,500)	8,116,000)	7,585,000)	7,331,500)
Cost of product sold	(4,113,400)	(4,148,900)	(4,191,600)	(4,035,700)	(3,767,800)	(3,802,100)
Gross profit	4,707,300)	4,466,000)	4,151,900)	4,080,300)	3,817,200)	3,529,400)
Selling, general, and administrative expenses	(1,711,400)	(1,665,100)	(1,621,800)	(1,668,100)	(1,532,700)	(1,392,400)
Impairment of brewery construction in progress	(665,900)	—)	—)	—)	—)	—)
Impairment of assets held for sale	—)	(24,000)	(449,700)	—)	—)	—)
Gain on sale of business	1,700)	14,200)	74,100)	—)	—)	262,400)
Operating income	2,331,700)	2,791,100)	2,154,500)	2,412,200)	2,284,500)	2,399,400)
Income (loss) from unconsolidated investments	(1,635,500)	150,300)	(2,668,600)	2,101,600)	487,200)	27,300)
Interest expense	(356,400)	(385,700)	(428,700)	(367,100)	(332,000)	(333,300)
Loss on extinguishment of debt	(29,400)	(12,800)	(2,400)	(1,700)	(97,000)	—)
Income (loss) before income taxes	310,400)	2,542,900)	(945,200)	4,145,000)	2,342,700)	2,093,400)
(Provision for) benefit from income taxes	(309,400)	(511,100)	966,600)	(685,900)	(11,900)	(554,200)
Net income	1,000)	2,031,800)	21,400)	3,459,100)	2,330,800)	1,539,200)
Net income attributable to noncontrolling interests	(41,400)	(33,800)	(33,200)	(23,200)	(11,900)	(4,100)
Net income (loss) attributable to CBI	(40,400)	1,998,000)	(11,800)	3,435,900)	2,318,900)	1,535,100)

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).

Analysis of the financial results from 2017 to 2022 reveals a consistent upward trajectory in top-line performance. Net sales grew steadily from $7.33 billion to $8.82 billion, indicating sustained revenue growth over the six-year period.

Revenue and Gross Profitability: Total sales increased from $8.06 billion in 2017 to $9.53 billion in 2022. Gross profit expanded in tandem, rising from $3.53 billion to $4.71 billion. This trend suggests an improvement in gross margins, as the cost of product sold remained relatively stable despite the increase in net sales.
Operational Efficiency and Operating Income: Selling, general, and administrative expenses grew gradually from $1.39 billion in 2017 to $1.71 billion in 2022. Operating income showed resilience, peaking at $2.79 billion in 2021. However, a notable contraction occurred in 2022, where operating income fell to $2.33 billion, primarily driven by a $665.9 million impairment charge related to brewery construction in progress.
Non-Operating Volatility and Bottom-Line Impact: Net income attributable to the company exhibits extreme volatility due to fluctuations in income from unconsolidated investments. Gains reached a peak of $2.10 billion in 2019 but shifted to significant losses of $2.67 billion in 2020 and $1.64 billion in 2022. This volatility is the primary driver behind the instability of net income, which swung from a high of $3.44 billion in 2019 to a net loss of $40.4 million in 2022.
Debt and Taxation: Interest expenses remained relatively stable, fluctuating between $332 million and $429 million. Income tax provisions were highly irregular; a significant tax benefit of $966.6 million was recorded in 2020, which helped mitigate the operating losses and investment declines during that fiscal year.

In summary, the core operational business demonstrates consistent growth and expanding gross margins. However, the overall net profitability is heavily impacted by non-recurring impairment charges and the volatile performance of unconsolidated investment holdings.

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