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Jul 31, 2022
Brown-Forman Q1 2023 Earnings Report
Reported strong first quarter fiscal 2023 results, driven by double-digit revenue growth and strategic brand investments.
Key Takeaways
Brown-Forman reported strong first quarter fiscal 2023 results with net sales increasing 11% to $1.0 billion and diluted earnings per share increasing 30% to $0.52.
Reported net sales grew 11% (+17% organic) and were positively impacted by an estimated net increase in distributor inventories.
The Jack Daniel’s family of brands delivered 11% reported net sales growth (+19% organic), driven by 10% reported net sales growth (+21% organic) from Jack Daniel’s Tennessee Whiskey.
Woodford Reserve grew reported net sales 38% (+39% organic).
Ready-to-Drink (RTD) was fueled by Jack Daniel’s RTDs and New Mix with reported net sales growth of 17% (+21% organic).
Forward Guidance
The company anticipates continued growth in fiscal 2023 despite global macroeconomic and geopolitical uncertainties. They expect organic net sales growth in the mid-single digit range and project reported gross margin to increase slightly. They anticipate mid-single digit organic operating income growth and expect their fiscal 2023 effective tax rate to be in the range of approximately 22% to 23%. Capital expenditures are planned to be in the range of $190 to $210 million.
Positive Outlook
- Strength of portfolio of brands
- Strong consumer demand
- Expect organic net sales growth in the mid-single digit range.
- Project reported gross margin to increase slightly.
- Anticipate mid-single digit organic operating income growth.
Challenges Ahead
- Global macroeconomic uncertainties
- Geopolitical uncertainties
- Inflation
Historical Earnings Impact
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Avg. Return Before/After Earnings
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