By Allison Prang
Constellation Brands Inc. Thursday said it expects beer sales to rise this fiscal year, wine and spirits sales to fall and earnings to decline.
The company said it expects beer sales to grow 7% to 9%, wine and spirits sales to fall 22% to 24% and wine and spirits organic sales to grow 2% to 4%.
The company said it is expecting earnings for the fiscal year of $6.90 to $7.20 a share, down from $10.23 a share for fiscal 2021. On a comparable basis not including Canopy, Constellation expects earnings of $9.95 to $10.25 a share.
Constellation said it plans to spend $1 billion to $1.1 billion on capital expenditures, mostly to grow its Mexico beer operations.
The company forecast $2.4 billion to $2.6 billion in operating cash flow and $1.4 billion to $1.5 billion of free cash flow.
The company said it expects $350 million to $360 million in interest expense and a tax rate of about 22%. It is expecting its comparable tax rate--excluding some items--to be about 19%, it said.
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(END) Dow Jones Newswires