Constellation Brands Inc. (NYSE:STZ)

The financial data reveals several noteworthy trends regarding the company's profitability and sales performance over the examined periods.

Operating income (loss)

Operating income exhibited moderate growth from 2005 to 2007, rising from approximately 568 million to nearly 699 million US dollars. However, there was a significant downturn in 2008, with operating income turning into a substantial loss of about 357 million US dollars. Following this decline, operating income recovered steadily from 2009 onwards, with notable increases peaking around 2014 at over 2.4 billion US dollars. Despite some fluctuations thereafter, operating income remained strong, generally exceeding 2 billion US dollars through to 2022.

Net sales

Net sales experienced a generally upward trajectory, starting from roughly 4.1 billion US dollars in 2005 and showing early growth until 2007. A decline is observed in 2008 through 2012, coinciding with the period of reduced operating income, with net sales dropping to approximately 2.65 billion US dollars in 2012. After this period, there was a significant rebound and sustained growth in net sales, reaching nearly 8.8 billion US dollars by 2022, indicating robust recovery and expansion of sales volume or pricing power.

Operating profit margin

The operating profit margin displayed variability corresponding to changes in operating income and net sales. It started at around 14% in 2005, remained fairly stable up to 2007, but collapsed into a negative margin of nearly -9.5% in 2008, reflecting the operating loss. Subsequently, the margin improved consistently, achieving exceptionally high levels above 50% in 2013, suggesting either a substantial increase in operational efficiency or possibly an extraordinary income event during that year. Post-2013, the margin stabilized between approximately 25% and 33%, indicating a stronger and more profitable operational base compared to earlier years.

Overall, the data evidences a period of operational difficulty around 2008, followed by recovery and significant growth in both sales and profitability. The improvements in operating profit margin after the downturn suggest enhanced management effectiveness or favorable market conditions enabling the company to sustain higher profitability over time.