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Jul 31, 2021

Brown-Forman Q1 2022 Earnings Report

Brown-Forman reported strong first quarter fiscal 2022 results driven by the strength of its portfolio, benefiting from the re-opening of the on-premise, sustained at-home consumption, and continued premiumization trends.

Key Takeaways

Brown-Forman's first quarter fiscal 2022 net sales increased by 20% to $906 million, with underlying sales up 18%. Operating income decreased by 25% to $289 million, while diluted earnings per share declined by 41% to $0.40, impacted by the sale of brands in the prior year. The company is closely monitoring potential volatility associated with the evolving pandemic and supply chain disruptions.

Net sales grew 20% (+18% underlying) with strong growth across all geographic clusters and the Travel Retail channel.

Jack Daniel’s family of brands net sales grew 20% (+16% underlying).

Premium bourbons grew net sales 34% (+36% underlying).

The tequila portfolio grew net sales 32% (+23% underlying).

Total Revenue
$906M
Previous year: $753M
+20.3%
EPS
$0.4
Previous year: $0.4
+0.0%
Gross Margin
61%
Previous year: 61.7%
-1.1%
Operating Margin
31.9%
Previous year: 51.4%
-37.9%
Effective Tax Rate
28.5%
Previous year: 11.6%
+145.7%
Gross Profit
$553M
Previous year: $465M
+18.9%
Cash and Equivalents
$1.17B
Previous year: $908M
+29.1%
Free Cash Flow
$171M
Previous year: $76M
+125.0%
Total Assets
$6.58B
Previous year: $6.19B
+6.3%

Brown-Forman

Brown-Forman

Forward Guidance

Due to the volatility and uncertainty that continues to exist in the operating environment, including recent COVID-19 trends and global supply chain disruptions, we have revised some of our expectations for fiscal 2022.