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Oct 31, 2021
Brown-Forman Q2 2022 Earnings Report
Brown-Forman reported a net sales increase and raised its full year outlook.
Key Takeaways
Brown-Forman Corporation announced strong net sales results for the second quarter of fiscal 2022, with net sales increasing by 1% to $994 million. The company has also raised its full-year outlook, expressing confidence in its growth momentum despite ongoing challenges from the pandemic and supply chain disruptions.
Net sales increased by 1% to $994 million (+7% on an underlying basis).
Operating income decreased 2% to $322 million (+10% on an underlying basis).
Diluted earnings per share decreased 2% to $0.49.
The company raised its full-year underlying net sales outlook from mid-single digit to high-single digit growth.
Brown-Forman
Brown-Forman
Forward Guidance
Brown-Forman has revised its full-year underlying net sales outlook from mid-single digit to high-single digit growth. The company anticipates managing through global supply chain disruptions and expects the impact to become less significant in the second half of the year. The company expects high-single digit underlying operating income growth for the full year.
Positive Outlook
- Revised full-year underlying net sales outlook from mid-single digit to high-single digit growth.
- Managing through the impact of global supply chain disruptions.
- Expect supply chain disruptions to become less significant in the second half of the year.
- Expect high-single digit underlying operating income growth for the full year.
- Modest positive impact of the January 1, 2022 suspension of tariffs on American whiskey exports to the European Union.
Challenges Ahead
- Volatility and uncertainty persist in the operating environment due to COVID-19.
- Ongoing supply chain disruptions, including glass supply.
- Expect reported gross margin to be flat or slightly down for the full year compared to fiscal 2021.
- Unfavorable impacts of supply chain disruptions.
- Higher input costs related to commodity prices and higher transportation costs.