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Apr 30, 2025
Brown-Forman Q4 2025 Earnings Report
Brown-Forman reported a decline in sales and profitability during the fourth quarter, primarily due to the absence of divestiture gains from the prior year and restructuring costs.
Key Takeaways
Q4 revenue and earnings declined, impacted by challenging macroeconomic conditions, divestitures, and lower consumer demand. The company faced reduced gross and operating margins and implemented restructuring initiatives to improve long-term efficiency.
Revenue decreased by 7% YoY to $894M due to divestitures and softer demand.
EPS fell to $0.31, down from $0.56 in the prior-year quarter.
Operating income dropped by 45% due to absence of divestiture gains and restructuring charges.
Gross profit and margins declined amid higher input costs and FX headwinds.
Revenue by Geographic Location
Forward Guidance
Brown-Forman anticipates a challenging FY2026 due to macroeconomic and geopolitical volatility but expects to offset pressures through innovation, restructuring benefits, and distribution evolution.
Positive Outlook
- Expected annualized savings of $70–80M from restructuring
- U.S. distribution overhaul to enhance growth
- Focus on premium portfolio and innovation
- Improved agility in market execution
- Reduced operating cost base expected to support margins
Challenges Ahead
- Low visibility due to macroeconomic and geopolitical risks
- Tariff uncertainties could impact margins and pricing
- Lower non-branded barrel sales projected
- Consumer demand softness may persist
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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