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Oct 31, 2023
Brown-Forman Q2 2024 Earnings Report
Brown-Forman's second quarter results reflected a slight sales increase and operating income growth, with diluted earnings per share also rising.
Key Takeaways
Brown-Forman reported a 1% increase in net sales to $1.1 billion for the second quarter of fiscal 2024. Operating income rose by 8% to $339 million, and diluted earnings per share increased by 6% to $0.50. The company's first half results showed a 2% increase in net sales to $2.1 billion and a 1% increase in operating income to $666 million.
Net sales growth was driven by Emerging markets and supported by growth in Developed International markets and the Travel Retail channel.
Gin Mare and Diplomático brands collectively increased reported net sales by 2%.
New Mix RTD delivered very strong reported net sales growth of 41%.
Jack Daniel’s Tennessee Apple delivered double-digit reported net sales growth of 51%.
Forward Guidance
Brown-Forman expects organic net sales growth in the 3% to 5% range and organic operating income growth in the 4% to 6% range for fiscal year 2024. The company anticipates the effective tax rate to be approximately 21% to 23% and capital expenditures in the range of $250 to $270 million.
Positive Outlook
- Strength of portfolio of brands will deliver growth.
- Pricing strategy will deliver growth.
- Continued input cost pressures will be partially offset by lower supply chain disruption costs.
Challenges Ahead
- Evolving global macroeconomic conditions continue to create a challenging operating environment.
- Input cost pressures.
- Supply chain disruption costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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