Constellation Brands Cites Balance Sheet Strength in Covid-19 Prep

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.

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(END) Dow Jones Newswires

April 03, 2020 08:20 ET (12:20 GMT)

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