ROCHESTER, N.Y. - Constellation Brands (NYSE:STZ), a prominent producer and marketer of beer, wine, and spirits, announced today the appointment of E. Yuri Hermida as the company's new Executive Vice President, Chief Growth & Strategy Officer. Hermida will be responsible for areas including Consumer Insights & Innovation, Digital, Transformation, Media, New Business Ventures, and Strategy & Analytics.
Hermida has a global leadership background with a history of delivering results in North America, Asia, Europe, and Latin America. He brings to Constellation Brands his expertise in general management, operations, marketing, research and development, and innovation. Prior to this role, Hermida was President at Sovos Brands and served as Chief Growth Officer. His previous experience includes significant roles at Reckitt in Europe and North America, and brand management positions at The Procter & Gamble Company.
Bill Newlands, President and CEO of Constellation Brands, expressed confidence in Hermida's ability to contribute to the company's growth, citing his extensive experience and diverse perspective in the consumer packaged goods sector.
Hermida succeeds Mallika Monteiro, who has transitioned to the role of Executive Vice President and Managing Director for the company's beer brand portfolio. In her new position, Monteiro will oversee brand marketing, advertising, and other critical elements to sustain momentum for Constellation's high-end beer brands.
Constellation Brands is known for its iconic beer brands such as Corona and Modelo, as well as its wine and spirits brands like Robert Mondavi Winery and Casa Noble Tequila. The company emphasizes its commitment to sustainable and responsible operations, aligning with its mission to build brands that people love.
This announcement is based on a press release statement from Constellation Brands, Inc. The company's leadership changes reflect its ongoing efforts to adapt to consumer and category trends and maintain its position as a leader in the beverage alcohol industry.
In other recent news, Constellation Brands has seen significant changes in its financial outlook. TD Cowen and BofA Securities downgraded the company's stock from Buy to Hold, attributing it to the decelerating growth pace for the company's beer segment and tepid beer volume growth respectively. The company's second-quarter results showed a nearly 6% increase in net sales and a 13% growth in operating income in its beer business, despite a challenging macroeconomic environment.
Barclays maintained an Overweight rating on the company's stock, confident in the company's beer net sales growth, which is anticipated to remain around +6%. HSBC adjusted its outlook on Constellation Brands shares, reducing the price target to $285 from the previous $300 while retaining a Hold rating on the stock. The adjustment followed a decrease in the company's shares after the second quarter results revealed weaker than expected beer sales.
Jefferies maintained a Buy rating on Constellation Brands but lowered the price target slightly to $309 from $310, following observations of challenges faced by the company in the beer segment. Truist Securities revised its sales and earnings per share estimates for the company, reducing its stock price target from $265.00 to $255.00 but maintaining a Hold rating. These are the recent developments for Constellation Brands.
InvestingPro Insights
As Constellation Brands welcomes E. Yuri Hermida to its executive team, investors may be interested in the company's financial health and market position. According to InvestingPro data, Constellation Brands boasts a substantial market capitalization of $43.73 billion, underscoring its significant presence in the beverage alcohol industry.
The company's financial strength is evident in its ability to generate revenue, with the latest figures showing $10.19 billion over the last twelve months. This represents a modest growth of 4.14% year-over-year, indicating steady expansion in a competitive market. Constellation's profitability is also noteworthy, with a gross profit margin of 51.32% and an operating income margin of 33.52%, reflecting efficient operations and strong pricing power for its premium brands.
InvestingPro Tips highlight some interesting aspects of Constellation Brands' financial profile. The company has raised its dividend for 10 consecutive years, demonstrating a commitment to returning value to shareholders. This is further supported by a current dividend yield of 1.66% and an impressive dividend growth rate of 13.48% over the last twelve months.
However, investors should note that the stock is trading at a high earnings multiple, with a P/E ratio of 76.09. This could suggest that the market has high expectations for future growth, possibly influenced by strategic moves like the recent executive appointments.
For those considering an investment in Constellation Brands, InvestingPro offers additional insights, with 8 more tips available on the platform to help inform investment decisions.
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