Brown-Forman Q1 2021 Earnings Report
Key Takeaways
Brown-Forman's first quarter fiscal 2021 results showed net sales down 2% to $753 million but up 3% on an underlying basis. Operating income increased 56% to $387 million, and diluted earnings per share grew 73% to $0.67.
Underlying net sales grew 3%, with the United States and developed international markets growing underlying net sales 9% and 12%, respectively.
Premium bourbons grew underlying net sales 18%, driven by Woodford Reserve and Old Forester.
The tequila portfolio grew underlying net sales 16%, led by New Mix in Mexico and el Jimador.
Diluted earnings per share increased 73% to $0.67, including gains from the sale of brands and a discrete tax item.
Brown-Forman
Brown-Forman
Forward Guidance
The company continues to face substantial uncertainty due to the rapidly evolving environment with the COVID-19 pandemic and its effect on the global economy and remains unable to provide quantitative guidance for fiscal year 2021.
Positive Outlook
- Company maintains expectations to fully fund ongoing investments in the business.
- Company maintains expectations to pay regular dividends.
- Company believes that they continue to be in a strong financial position.
- Company's capacity to generate solid operating cash flows remain sound.
- Company is confident about the growth opportunities for their brands and the resilience of their business.
Challenges Ahead
- Substantial uncertainty due to the rapidly evolving environment with the COVID-19 pandemic
- COVID-19 effect on the global economy
- Expected volatility
- Company remains unable to provide quantitative guidance for fiscal year 2021.
- Unspecified risks and uncertainties mentioned in the forward-looking statements.