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Brown-Forman
🇺🇸 NYSE:BF-A
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•
Jan 31, 2021

Brown-Forman Q3 2021 Earnings Report

Brown-Forman reported resilient year-to-date performance amidst a challenging environment.

Key Takeaways

Brown-Forman's Q3 2021 showed a 1% increase in reported net sales to $911 million, but remained flat on an underlying basis. Operating income decreased by 8% to $281 million, and diluted earnings per share declined by 5% to $0.45. The company remains focused on executing long-term strategic priorities and delivering broad-based growth.

Underlying net sales grew 2% year-to-date, driven by the United States and developed international markets, which each grew 7%.

Jack Daniel’s family of brands underlying net sales grew 2%, supported by Jack Daniel’s RTDs, Tennessee Apple, Tennessee Honey, and Gentleman Jack.

Premium bourbons grew underlying net sales 21%, with Woodford Reserve and Old Forester showing strong double-digit growth.

The tequila portfolio grew underlying net sales 6%, led by New Mix in Mexico.

Total Revenue
$911M
Previous year: $899M
+1.3%
EPS
$0.45
Previous year: $0.48
-6.2%
Gross Margin
60.4%
Previous year: 61.9%
-2.4%
Operating Margin
30.9%
Previous year: 33.8%
-8.6%
Effective Tax Rate
15.7%
Previous year: 18.6%
-15.6%
Gross Profit
$550M
Previous year: $557M
-1.3%
Cash and Equivalents
$1.11B
Previous year: $276M
+300.7%
Free Cash Flow
$531M
Previous year: $286M
+85.7%
Total Assets
$6.5B
Previous year: $5.52B
+17.7%

Brown-Forman

Brown-Forman

Forward Guidance

The company expects to continue to face uncertainty related to the evolving COVID-19 pandemic and its effect on the global economy. As a result, no quantitative guidance is being provided for fiscal year 2021.

Positive Outlook

  • The company's financial and business fundamentals have remained strong throughout the entire pandemic.
  • The company delivered solid growth in a challenging environment.
  • The company believes it is operating from a position of strength.
  • The company expects to emerge even stronger from this crisis.
  • The company aims to continue to grow market share and drive long-term sustainable growth for all stakeholders.

Challenges Ahead

  • The company expects to continue to face uncertainty related to the evolving COVID-19 pandemic.
  • The COVID-19 pandemic will affect the global economy.
  • The company is not providing quantitative guidance for fiscal year 2021.
  • COVID-19 related restrictions severely limited and in some cases entirely shut down the on-premise channel.
  • Underlying net sales in Travel Retail continued to be significantly impacted by the continuation of COVID-19 related travel bans and restrictions.

Company Overview

Full financial data and analysis

View Brown-Forman