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Oct 31, 2020

Brown-Forman Q2 2021 Earnings Report

Brown-Forman's second-quarter and first-half fiscal 2021 results were announced, showing resilience amidst an unprecedented environment.

Key Takeaways

Brown-Forman reported essentially flat net sales for the second quarter of fiscal 2021, with a slight decrease in operating income and diluted earnings per share. However, underlying net sales grew by 4%. The first half of the fiscal year saw a slight decrease in reported net sales but an increase in reported operating income and diluted earnings per share.

Underlying net sales grew by 4% in the first half of fiscal 2021.

Premium bourbons experienced strong underlying net sales growth of 22%.

The tequila portfolio saw an underlying net sales increase of 13%.

The company is not providing quantitative guidance for fiscal year 2021 due to the substantial uncertainty in the rapidly evolving environment.

Total Revenue
$985M
Previous year: $989M
-0.4%
EPS
$0.5
Previous year: $0.59
-15.3%
Gross Margin
59%
Previous year: 62.7%
-5.9%
Operating Margin
33.5%
Previous year: 35.6%
-5.9%
Effective Tax Rate
22.1%
Previous year: 15%
+47.3%
Gross Profit
$581M
Previous year: $619M
-6.1%
Cash and Equivalents
$964M
Previous year: $235M
+310.2%
Free Cash Flow
$178M
Previous year: $88M
+102.3%
Total Assets
$6.35B
Previous year: $5.55B
+14.4%

Brown-Forman

Brown-Forman

Forward Guidance

The company continues to face substantial uncertainty in the rapidly evolving environment due to COVID-19 and its effect on the global economy. As a result of this ongoing uncertainty and expected volatility, the company is not providing quantitative guidance for fiscal year 2021.