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Jan 31, 2025
Brown-Forman Q3 2025 Earnings Report
Brown-Forman reported a decline in net sales, operating income, and EPS for Q3 2025 while reaffirming its full-year growth outlook.
Key Takeaways
Brown-Forman's Q3 FY25 results showed a 3% decline in net sales to $1.035 billion, a 25% drop in operating income to $280 million, and a 5% decrease in diluted EPS to $0.57. The company attributed the decline to divestitures, lower volumes in certain segments, and foreign exchange effects but maintained confidence in its long-term strategy.
Net sales decreased 3% to $1.035 billion, impacted by divestitures and lower sales in key markets.
Operating income fell 25% to $280 million due to higher costs and restructuring expenses.
Diluted EPS declined 5% to $0.57, primarily due to lower operating income.
The company reaffirmed its full-year guidance for 2-4% organic net sales and operating income growth.
Forward Guidance
Brown-Forman reaffirmed its full-year outlook, expecting organic net sales and operating income growth in the 2-4% range, despite macroeconomic challenges.
Positive Outlook
- Organic net sales growth forecasted at 2-4%.
- Operating income expected to grow 2-4%.
- Capital expenditures planned between $180M-$190M.
- Effective tax rate guidance lowered to 20-22%.
- Continued strong performance in emerging markets and premium whiskey brands.
Challenges Ahead
- Geopolitical and macroeconomic uncertainties remain a challenge.
- Foreign exchange impact could continue to weigh on results.
- Restructuring costs may affect short-term profitability.
- Soft demand trends in developed markets, especially Europe.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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