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Jul 31, 2023
Brown-Forman Q1 2024 Earnings Report
Brown-Forman's financial performance was impacted by difficult shipment comparisons from fiscal year 2023 and inventory rebuild, while reaffirming full-year fiscal 2024 guidance.
Key Takeaways
Brown-Forman Corporation reported a 3% increase in reported net sales to $1.0 billion for the first quarter of fiscal 2024. However, reported operating income decreased by 4% to $327 million, and diluted earnings per share decreased by 7% to $0.48. The company reaffirmed its full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth.
Emerging, Developed International markets and Travel Retail channel delivered broad-based reported net sales growth.
Portfolio growth was led by Gin Mare and Diplomático brands, New Mix RTD, el Jimador and Jack Daniel’s Tennessee Apple.
Reported gross margin expanded 90 basis points.
Brand investment increased reported advertising expense 19%.
Forward Guidance
The company reiterates its guidance and expects organic net sales growth in the 5% to 7% range and organic operating income growth in the 6% to 8% range for fiscal year 2024.
Positive Outlook
- Strength of portfolio of brands
- Pricing strategy
- Strong consumer demand
Challenges Ahead
- Trends will normalize after two consecutive years of double-digit organic net sales growth
- Continued input cost pressures
Historical Earnings Impact
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Avg. Return Before/After Earnings
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