...Constellation Brands' wine segment continues to underperform, but ongoing growth in its beer portfolio and steadily rebounding margins underpin still-healthy EBITDA growth. Net sales for the second quarter (ended Aug. 31, 2024), increased 3% year over year, below our expectations at the start of the fiscal year. This is primarily because of a 12% year-over-year net sales decline in its wine and spirits segment, where inventory destocking continues to be a headwind, but 6% net sales growth in its much larger beer segment offsets the decline. In anticipation of this performance, on Sept. 3, 2024, the company revised down its net sales guidance range to reflect the weaker wine performance and, to a lesser extent, moderately lower demand in the beer segment related to higher unemployment levels. The company also reported a $2.25 billion impairment in the wine & spirits business during the second quarter that it had signaled would occur alongside its lower net sales guidance....
