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Apr 30, 2021

Brown-Forman Q4 2021 Earnings Report

Brown-Forman reported strong fiscal year 2021 results driven by growth across geographic clusters and brand portfolio, despite challenges from COVID-19.

Key Takeaways

Brown-Forman's Q4 2021 net sales increased by 14% to $812 million. However, operating income decreased by 10% to $168 million, and diluted earnings per share declined by 6% to $0.25.

Underlying net sales grew 6% (+3% reported).

Growth occurred across each of the three major International Monetary Fund (IMF) geographic clusters.

Jack Daniel’s family of brands underlying net sales grew 4% (+1% reported).

Premium bourbons maintained double-digit underlying net sales growth.

The tequila portfolio grew underlying net sales 14% (+9% reported).

Total Revenue
$812M
Previous year: $709M
+14.5%
EPS
$0.25
Previous year: $0.27
-7.4%
Gross Margin
61.4%
Previous year: 63.9%
-3.9%
Operating Margin
20.7%
Previous year: 26.4%
-21.6%
Effective Tax Rate
18.4%
Previous year: 22.9%
-19.7%
Gross Profit
$498M
Previous year: $453M
+9.9%
Cash and Equivalents
$1.15B
Previous year: $675M
+70.4%
Free Cash Flow
$224M
Previous year: $186M
+20.4%
Total Assets
$6.52B
Previous year: $5.77B
+13.1%

Brown-Forman

Brown-Forman

Forward Guidance

For fiscal 2022, Brown-Forman anticipates mid-single digit growth in underlying net sales and operating income.

Positive Outlook

  • Optimistic outlook as the operating environment is expected to continue to improve.
  • Confident in the collective strength of our markets.
  • Benefit from the re-opening of the on-premise channel.
  • Benefit from increase in tourism.
  • Portfolio remains well positioned to capitalize on the continuing spirits premiumization trend.