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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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