2 New Ways Constellation Brands Is Boosting Growth
Amid the coronavirus shutdowns, sales of various industries shrank abruptly. Two categories, alcohol and cannabis, bucked the trend. It appears that when you tell adults to stay cooped up in their homes, some tend to use an elixir to calm their nerves. Life has been hard these past few months for many people, but for Constellation Brands (NYSE: STZ), it was well-positioned to thrive in this environment.
In the face of widespread business disruptions, Constellation still managed to grow its free cash flow 24% year over year in the fiscal first quarter (ended May 31) as revenue declined 6%. And it still has $2 billion in available credit, not to mention $303 million of cash and equivalents on hand. As a result, Constellation Brands has the liquidity and strength to pump investment dollars into its next major growth projects: hard seltzer and cannabis.
Image source: Getty Images.
Source Fool.com
