Brown Forman Inc · NYSE:BF.A
Brown Forman — Q4 2025 Earnings Presentation
18 slides from Brown Forman's earnings presentation, Jun 5, 2025
Slide 1: Fourth Quarter and Fiscal 2025 Results
A World of OPPORTUNITY FOURTH QUARTER AND FISCAL 2025 RESULTS June 5, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “e
Slide 3: Highlights: Fiscal 2025
Highlights: Fiscal 2025 Net sales decreased OPERATING MARKET AND 5% ENVIRONMENT Remained challenging due to BRAND RESULTS Net sales declined across all geographic (+1% organic1) ongoing macroeconomic and aggregations, largely driven by the Finlandia geopolitical uncertainties and Sonoma-Cutrer dives
Slide 4: Fiscal 2025 Results
Fiscal 2025 Results Reported Reported Acquisitions Impairment Other Foreign Organic ($ in millions, Change and Charges Items1 Exchange Change2 except per (%) Divestitures (+/-) (+/-) (+/-) (%) share amount) (+/-) Net Sales $3,975 (5)% 3% —% 1% 2% 1% Gross Profit $2,343 (7)% 3% —% —% 3% (2)% Advertis
Slide 5: Net Sales Across Categories
Net Sales Across Categories REPORTED ORGANIC1 —% 1% Whiskey WHISKEY (3)% Whiskey WHISKEY (2)% Jack Daniel’s JACK DANIEL’S TENNESSEE Tennessee —% Jack Daniel’s... 1% (6)% JACK DANIEL’S TENNESSEE WHISKEY (5)% WHISKEY Whiskey 8% 8% Woodford WOODFORD Reserve RESERVE 2% Woodford WOODFORD Re... RESERVE 3%
Slide 6: Net Sales Across Geographic Aggregations
Net Sales Across Geographic Aggregations REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 U.S. DEVELOPED INTERNATIONAL (4)% (2)% (4)% (2)% (3)% (7)% (6)% (5)% F25 F25 F25 F25 F24 F24 F24 F24 REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 EMERGING TRAVEL RETAIL 6% 4% 6
Slide 7: Gross Margin Contraction of 150 Basis Points
Gross Margin Contraction of 150 Basis Points 0.3% 0.3% 1.1% Gross margin decline largely driven 60.5% (0.7)% 58.9% by higher input costs, unfavorable fixed cost absorption related to (2.5)% lower production levels, and the negative effect of foreign exchange, partially offset by favorable price/mix.
Slide 8: Fiscal 2026 Outlook
Fiscal 2026 Outlook Organic1 net sales decline in Organic operating income decline Capital expenditures to be in the Effective tax rate to be in the range the low-single digit range. in the low-single digit range. range of $125 to $135 million. of approximately 21% to 23%. 1 See appendix for Non-GAA
Slide 9: Appendix
APPENDIX A World of OPPORTUNITY NOTHING BETTER IN THE MARKET page 9
Slide 10: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and Reconciliation Use of Non-GAAP Financial Information. We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). Additionally, we use some financial measures in this presentation that are not measures of financial performa
Slide 11: Non-GAAP Financial Measures and Reconciliation (continued)
Non-GAAP Financial Measures and Reconciliation (continued) • “Other Items.” Other Items include the additional items outlined below. “Foundation.” During fiscal 2024, we committed $23 million to the Brown-Forman Foundation and Dendrifund (the Foundation and Dendrifund) to support the communities whe
Slide 12: Definitions
Definitions From time to time, to explain our results of operations or to highlight trends and uncertainties affecting our business, we aggregate markets according to stage of economic development as defined by the International Monetary Fund (IMF), and we aggregate brands by beverage alcohol catego
Slide 13: Definitions (continued)
Definitions (continued) • “Ready-to-Drink” includes all ready-to-drink (RTD) and ready-to-pour (RTP) products. The brands included in this category are Jack Daniel’s RTD and RTP products (JD RTD/RTP), New Mix, and other RTD/RTP products. • “Jack Daniel’s RTD/RTP” products include all RTD line extens
Slide 14: Definitions (continued)
Definitions (continued) Other Metrics. • “Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this presentation, unless otherwise specified, we refer to shipments when discussing volume. • “Depletions.” This metric is commonly used in the beverage alcoh
Slide 15: Fiscal 2025 and Fiscal 2024 Reconciliation
Fiscal 2025 and Fiscal 2024 Reconciliation Acquisitions & Impairment Charges Twelve months ended April 30, 2025 Reported Other Items1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) (+/-) Net Sales (5)% 3% —% 1% 2% 1% Gross Profit (7)% 3% —% —% 3% (2)% 2 Operating Expenses (10)% 6% (3)% (2)%
Slide 16: Brand Reconciliation Fiscal 2025 and Fiscal 2024 Net Sales Growth
Brand Reconciliation Fiscal 2025 and Fiscal 2024 Net Sales Growth Acquisitions & Divestitures Twelve months ended April 30, 2025 Reported Other Items1 (+/-) Foreign Exchange (+/-) Organic (+/-) Whiskey —% —% —% 1% 1% Jack Daniel’s Tennessee Whiskey —% —% —% 1% 1% Woodford Reserve 8% —% —% —% 8% Old
Slide 17: Geographic Reconciliation Fiscal 2025 and Fiscal 2024 Net Sales Growth
Geographic Reconciliation Fiscal 2025 and Fiscal 2024 Net Sales Growth Acquisitions & Twelve months ended April 30, 2025 Reported Other Items1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) United States (7)% 3% 1% —% (2)% Developed International (6)% 2% —% 1% (3)% Emerging (2)% 5% —% 6% 9%
Slide 18: A World of Opportunity
9) BROWN-FORMAN AWorld of