financial to Thank uncertain you, Bill, generate an everyone. environment Despite headwinds and strong results. Constellation continues to economic COVID-XX, Brands and hello, related
excluding by and repayment During achieving increased ongoing beer our second $X.XX, both EPS, Canopy we resulting quarter, in wine segments in to and growth, leverage. free of generated cash our spirits comparable margins strong and basis targeted flow XX%, deliver in continued debt and progress
volume detail, let's sales I'll net where focus financial COVID-XX, QX QX generally review with comparable related beer. Now to in basis more were starting on performance prior results, in Despite reduced flat year. to shipment
pricing. on-premise day. continued the In Excluding QX, volume day quarter the partially successful business shipment QX, reduction nearly the on channel Hard sales Especial X% organic growth. by year-over-year. down for performance strong the volume volume depletion favorable X% and benefited by net driven impact extra which one nearly increased days organic of was Corona the in in sell X% Ballast from and are Point flat channel of Depletion When for came offset in the X%, to Modelo sell approximately than at extra the growth launch adjusted year-over-year as beer Seltzer we due impact off-premise impact, divestiture, the the of more offset selling depletion generated XX% In COVID-XX. the
from we the resulting underlying QX production remains While stocks remain the versus quite fiscal of business out robust. strength demand due depletion of some tempered consumer trends QX earlier to in in our the year, in in slowdown as confident
that out during network, inventory negatively are and beginning both of with roughly slowdown the supply created following of at stocks production at and QX centers QX X/X in across quarter. distribution for retail rebuilding of and impacted making the We the our depletions progress our our distributors, good
expected levels expect by volume more of to We outpace distributor the quarter. inventory QX return end is as to normal levels depletion during volume shipment the to
and as the material to and postponements. on costs the of cost beer benefit increased higher COVID-XX-related flat sales unfavorable gross cancellations and primarily resulting basis and breweries, costs percent favorable pricing X.X% in operational points and/or event Beer by decreased of as our to divestiture year of mix margins. marketing resulting sporting driven margin from decreased Marketing reduced to Moving was net at offset was Point as XX.X% Ballast absorption. spend a fixed by unfavorable throughput XX sponsorship prior
beer above-mentioned As of margins factors, points XX.X%. the a XX to operating result increased basis
Looking ahead to couple a a touch the perspective. beer on balance year, items of segment the of to from
increases on fall. we this selective First, price plan taking
market-by-market year, increases on approach For remains given market. SKU-by-SKU our price pricing a basis on implement depending annually This pricing strategy, the we within our intact. dynamics and a
the be to of increases instances Mexican back said, X% shift that timing the half could in into within we and throughout With fiscal However, may some pricing XXXX. the our the beginning more our still year staggered of price of X% the expect for 'XX, of year fiscal fiscal portfolio.
spend a year fiscal marketing due and muted our in Second, events. of to lack X.X% sporting sponsorship our percentage the to net of sales the first decreased of was half significantly as
However, committed of especially during in half year, the return we increase the spending back to brands, are leveraging our by behind an fiscal the sports. to
As basis. the such, sales marketing of we net expect spend a X% of XX% on full to year range in
Moving to and spirits. wine
power brand brands power Our higher-end the performance continues our wine to strategy and marketplace for outpace to momentum segment. higher-end as continues gain spirits
the and align return However, to for lower brands incentive programs with going reflecting 'XX. better volume during as QX power initiatives our ran for business quarter X% QX decline, resulting strategy some we the overall expected, brand our in divested. replicate forward, the X%, did during that volume pricing declined depletion be decelerated while fiscal depletion a not To
key on inventory hand at rightsize also we quarter, retailers to several in the During states. worked chain
depletion Wine will go-forward on and on XX%. us down volume, better declined sales allow this drove XX% impact quarter, to spirits a a the trends basis. this net to negative manage While inventories shipment in
previously increased of by brands mix the XX%, the timing price organic of shipments as were by in continued experienced mix, by to XX.X% Higher shipment X%, benefits along increased net offset Black and some power divested driven reflect marketing declined and Crawford, and shipment to partially spend, as Prisoner quarter. divestiture, brand from Gallo and approximately a lower Woodbridge price mix reflecting QX, net brands, expansion Excluding labels, QX points and and pricing we offset sales. due glass of robust by our basis communicated for partially with the volume fast-moving sales the primarily COGS impact Meiomi margin In from benefits outperformed mostly costs, to the lower rate costs. of Operating volume higher sales Kim favorable our be SG&A incremental COGS by from resulting driven and expectations, including Velvet results offset such percentage of the as net partially SVEDKA. decline margin transaction. the family, packaging XXX
promotions dollars The we as and addition, to In the initiatives incentive marketing margin quarter season. saw we timing marketing benefit innovation first to mostly due shift into plan brands as year not from on-premise. for half did the to power lower programming enter the advertising to to marketing we COVID-XX-related and selling current half key for related our occur activities in closures launches the the peak some is environment the as our operating fiscal support and second of
resulting in of majority in out point QX, quarter. occur increase for in shift a spend the will me that the year-over-year an Let
in broke Washington significant California, Oregon wildfires and August, out state. Bill discussed, As during
At expect from August We smoke through harvest are and ability damage as season. the wildfires to material currently impact demand. the we impact we consumer October progress meet our not of this a do monitoring to time, assessing to the these
in driving in remainder due our recognize the and levels, about the million margins $XX fixed are to we decreased impacted 'XX. $XX as expect of $XX Currently, fiscal costs of costs year to QX million in fiscal we we to these million be absorption. unfavorable However, $XX cost production million estimating to QX
ancillary review for a expecting QX. to deals commissioners the mentioned, and expect for reported close decree the spirits therefore, in we Therefore, increased other to approval year expecting we income, and wine submitted to net flattish weeks Gallo sales and, XX% reflecting consent and coming are will QX of of Bill the by As end be the the and a be expect spirits wine XX% while quarter. to expense marketing in operating and the wildfires reported impact to decline during prior the negative in of
support Comparable Now rest The average million expenses spend. the versus corporate by P&L. $XXX was the up in partially XX% efforts, at let's the increase to unfavorable losses and to an to driven ratio. by decreased interest foreign of increased contributions year. COVID-XX by our proceed primarily driven year-to-date leverage came reduced and as million, with basis approximately $XXX due Fiscal benefits, XX% in we fiscal lower offset approximately compensation currency charitable last expense primarily primarily for T&E quarter continue decrease borrowings increase
increased Canopy tax impact, driven Our XX.X% offset foreign stock-based year effective in came businesses, an by compensation. higher QX excluding in QX last basis by versus earnings comparable effective tax from equity rate, rates primarily on at XX.X% benefit partially our
marginal FY earnings. reflects While to year estimate The X tax estimated comparable primarily rate our equity impact, XX%, the versus estimated Canopy effective rate full earnings an rate higher rate, pre-COVID we foreign basis on our increase percentage was pre-COVID excluding expect point XX%. approximate now 'XX
Free which cash primarily generated approximately expect Fiscal flow cash reflects CapEx. provided of last end completed flow the totaled or CapEx operating our lower $XXX half by flow, fiscal below X beer of we cash by $X.X expansion the year-to-date for included and free We million represents million 'XX. year's Obregon CapEx XXXX. improvement approximately we be net an This to project brewery, impressive hectoliter of CapEx. by which the Moving cash spend. driven strong to XX% XX% activities at cash $XXX million as billion fiscal flow operating increase. of define first This free less
August, of QX, November net initial investment Canopy our of basis total fair In million. we XXXX investments. in gain In Moving to excluded recognized results. from a results. pretax since comparable the is These Canopy first were Canopy. $XX $XX fiscal value The in 'XX quarter Canopy recognized reported million impacts decrease
the has CEO been We company's are progress rightsizing and burn business, in David the pleased took cash free that over cash Klein as with made reducing flow. the since improving
for the as We to on prospects growth continue growth are Canopy against strategic bullish execute their they plan.
to the let's Now and outlook guidance. discussion shift
that events abruptly COVID-XX and and fiscal began unprecedented impact that almost to first we of and have our this the the developments time. evolved not formal dramatically consumers and our fiscal the of provide the concurrently year, volatility do to it believe given marketplace Given half at still financial related year with the during fiscal fast-moving start is prudent 'XX appropriate uncertainty, or for guidance
remains However, me medium-term and growth beer our segments. I'd In for our in both let a allocation capital normalized reiterate wine priorities. to closing, unchanged like our that environment, spirits reiterate and algorithm
remain to focused of form goal we term remain environment, further ratio. leverage down on dividends While given share paying $X debt focused shareholders in the and and of we in our the billion through on returning reducing short volatile fiscal the repurchases our 'XX,
our debt end while continuing by take are happy reduced Bill maintain we've 'XX, And from strong of resulting that, our generation dividend since flow the your cash fact, nearly and quarterly to our I In with questions. net to fiscal rate. $XXX million
