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Apr 30, 2024

Brown-Forman Q4 2024 Earnings Report

Brown-Forman's Q4 2024 earnings declined due to inventory reductions across the spirits value chain, but the company remained focused on long-term growth.

Key Takeaways

Brown-Forman reported a decrease in net sales for the fourth quarter of fiscal year 2024, but an increase in operating income and diluted earnings per share. The company's full-year results showed a slight decrease in net sales but significant growth in operating income and diluted earnings per share.

Fourth quarter reported net sales decreased 8% to $1.0 billion.

Fourth quarter reported operating income increased 26% to $375 million.

Fourth quarter diluted earnings per share increased 31% to $0.56.

Full year reported net sales decreased 1% to $4.2 billion.

Total Revenue
$964M
Previous year: $1.05B
-7.8%
EPS
$0.56
Previous year: $0.43
+30.2%
Gross Margin
59%
Previous year: 60.8%
-3.0%
Operating Margin
38.9%
Previous year: 28.5%
+36.5%
Effective Tax Rate
23.5%
Previous year: 23.2%
+1.3%
Gross Profit
$569M
Previous year: $635M
-10.4%
Cash and Equivalents
$446M
Previous year: $374M
+19.3%
Free Cash Flow
$205M
Previous year: $163M
+25.8%
Total Assets
$8.17B
Previous year: $7.78B
+5.0%

Brown-Forman

Brown-Forman

Forward Guidance

Brown-Forman anticipates a return to growth for organic net sales and organic operating income in fiscal 2025, driven by gains in international markets and normalizing inventory trends, tempered by global macroeconomic and geopolitical uncertainties.

Positive Outlook

  • Organic net sales growth in the 2% to 4% range.
  • Organic operating income growth in the 2% to 4% range.
  • Effective tax rate to be in the range of approximately 21% to 23%.
  • Capital expenditures planned to be in the range of $195 to $205 million.

Challenges Ahead

  • Global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment.