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Jul 31, 2024
Brown-Forman Q1 2025 Earnings Report
Brown-Forman's financial performance was reported for Q1 2025, with net sales decreasing and reaffirming the full-year fiscal 2025 guidance.
Key Takeaways
Brown-Forman reported a decrease in net sales by 8% to $1.0 billion for the first quarter of fiscal 2025. Despite the decline, the company reaffirmed its full-year fiscal 2025 guidance, expecting organic top and bottom-line growth and continued gross margin expansion.
Net sales decreased across all geographic aggregations due to shipment timing and pricing strategy execution.
Diplomático Rum, Old Forester, and Woodford Reserve growth was offset by declines in Jack Daniel’s Tennessee Whiskey and the Finlandia divestiture.
Gross profit declined by 13%, with a gross margin reduction of 330 basis points due to input cost fluctuations and high inventory levels.
Operating expenses decreased by 12%.
Revenue by Geographic Location
Forward Guidance
Brown-Forman anticipates a return to growth for organic net sales and organic operating income in fiscal 2025, driven by gains in international markets and normalizing inventory trends. This outlook is tempered by the belief that global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment.
Positive Outlook
- Organic net sales growth in the 2% to 4% range.
- Organic operating income growth in the 2% to 4% range.
Challenges Ahead
- Global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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