•
Apr 30, 2023

Brown-Forman Q4 2023 Earnings Report

Brown-Forman reported a 5% increase in net sales and a 36% increase in diluted earnings per share.

Key Takeaways

Brown-Forman Corporation reported a 5% increase in net sales to $1.0 billion for the fourth quarter, with operating income increasing by 21% and diluted earnings per share increasing by 36% to $0.43.

Reported net sales increased 5% to $1.0 billion.

Reported operating income increased 21% to $298 million.

Diluted earnings per share increased 36% to $0.43.

Full year reported net sales increased 8% to $4.2 billion.

Total Revenue
$1.05B
Previous year: $996M
+5.0%
EPS
$0.43
Previous year: $0.31
+38.7%
Gross Margin
60.8%
Previous year: 62.8%
-3.2%
Operating Margin
28.5%
Previous year: 24.7%
+15.4%
Effective Tax Rate
23.2%
Previous year: 30.2%
-23.2%
Gross Profit
$635M
Previous year: $626M
+1.4%
Cash and Equivalents
$374M
Previous year: $868M
-56.9%
Free Cash Flow
$163M
Previous year: $177M
-7.9%
Total Assets
$7.78B
Previous year: $6.37B
+22.0%

Brown-Forman

Brown-Forman

Forward Guidance

Brown-Forman is optimistic about prospects for growth of organic net sales and organic operating income in fiscal 2024, expecting organic net sales growth in the 5% to 7% range and organic operating income growth in the 6% to 8% range.

Positive Outlook

  • Strength of portfolio of brands
  • Pricing strategy
  • Strong consumer demand
  • Expect organic net sales growth in the 5% to 7% range.
  • Anticipate organic operating income growth in the 6% to 8% range.

Challenges Ahead

  • Trends will normalize after two consecutive years of double-digit organic net sales growth.
  • Continued input cost pressures
  • Expect fiscal 2024 effective tax rate to be in the range of approximately 21% to 23%.
  • Capital expenditures are planned to be in the range of $250 to $270 million.
  • Difficult to quantify or predict with reasonable certainty items such as foreign exchange, which could have a significant impact on GAAP income statement measures.