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Jan 31, 2023
Brown-Forman Q3 2023 Earnings Report
Brown-Forman reported a 4% increase in net sales and a 50% decrease in operating income for the third quarter of fiscal year 2023, driven by portfolio growth and strategic investments.
Key Takeaways
Brown-Forman's Q3 2023 saw a 4% increase in reported net sales, reaching $1.1 billion. However, operating income decreased by 50% to $173 million, impacted by lower gross margin, a Finlandia brand impairment charge, and increased operating expenses. Diluted earnings per share also decreased by 61% to $0.21.
Net sales increased by 4% driven by strong consumer demand.
Operating income decreased by 50% due to lower gross margin and impairment charges.
Diluted earnings per share decreased by 61% due to decreased operating income and pension settlement charges.
Company delivered broad-based reported net sales growth across all geographic clusters and the Travel Retail channel.
Brown-Forman
Brown-Forman
Forward Guidance
The company anticipates strong growth in fiscal 2023 despite global macroeconomic volatility and geopolitical uncertainties.
Positive Outlook
- Expect organic net sales growth in the 8% to 10% range.
- Expect reported gross margin to be consistent with the first half of fiscal 2023.
- Anticipate high-single digit organic operating income growth.
- Expect fiscal 2023 effective tax rate to be in the range of approximately 22% to 23%.
- Capital expenditures are planned to be in the range of $190 to $210 million.