Brown Forman Inc · NYSE:BF.A
Brown Forman — Q1 FY2023 Earnings Presentation
18 slides from Brown Forman's earnings presentation, Aug 31, 2022
Slide 1: First Quarter of Fiscal 2023 Results
First Quarter of Fiscal 2023 Results
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,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “exp
Slide 3: First Quarter of 2023 Highlights
First Quarter of 2023 Highlights • Double-digit reported and organic top line results ◦ Jack Daniel’s Tennessee Whiskey +10% reported net sales growth (+21% organic) ◦ Woodford Reserve +38% reported net sales growth (+39% organic) ◦ Broad-based growth across all of our geographic clusters and the Tr
Slide 4: First Quarter of Fiscal Year 2023 Results Across Key Metrics
First Quarter of Fiscal Year 2023 Results Across Key Metrics Fiscal Year to Date Net Sales Growth Reported % chg 11 % Organic1 % chg 17 % Fiscal Year to Date Operating Income Growth Reported % chg 19 % Organic1 % chg 32 % EPS $/sh. % chg Q1 $ 0.52 30 % 1 See appendix for reconciliations from non-GAA
Slide 5: Continued Momentum for Jack Daniel's Tennessee Whiskey
Continued Momentum for Jack Daniel’s Tennessee Whiskey NOTHING BETTER IN THE MARKET. 5
Slide 6: Premium Bourbons Delivered Double-Digit Growth
Premium Bourbons Delivered Double-Digit Growth NOTHING BETTER IN THE MARKET. 6
Slide 7: Jack Daniel's RTDs and New Mix Fueled Ready-to-Drink Growth
Jack Daniel’s RTDs and New Mix Fueled Ready-to-Drink Growth NOTHING BETTER IN THE MARKET. 7
Slide 8: Continued Net Sales Growth Across All Geographic Clusters
Continued Net Sales Growth Across All Geographic Clusters in the First Quarter of Fiscal 2023 Reported Organic 7% 7% U.S. U.S. 16% 19% Developed 9% Developed 19% International 17% International 17% 17% 34% Emerging Emerging 40% 39% 77% 85% Travel Retail Travel Retail 61% 58% FY23 FY22 FY23 FY22 Note
Slide 9: First Quarter of Fiscal Year 2023 Gross Margin Expanded 80 Basis Points
First Quarter of Fiscal Year 2023 Gross Margin Expanded 80 Basis Points 1.3% 0.2% 61.8% 61.0% 2.3% (1.8)% (1.2)% Q1 FY22 Cost Foreign Price/Mix Tariffs Acquisitions & Q1 FY23 Exchange Divestitures NOTHING BETTER IN THE MARKET. 9
Slide 10: First Quarter Fiscal Year 2023 Results
First Quarter Fiscal Year 2023 Results Reported Acquisitions and Impairment Foreign Organic Change1 Change Divestitures Charges Exchange (+/-) (+/-) (+/-) (%) (%) Net Sales 11% —% —% 6% 17% Gross Profit 13% —% —% 8% 21% Advertising 23% —% —% 6% 28% SG&A 4% —% —% 3% 7% Operating Income 19% —% -2% 16%
Slide 11: Fiscal 2023 Outlook
Fiscal 2023 Outlook • Organic net sales growth expected to be in the mid-single digit range. • Reported gross margin projected to increase slightly compared to fiscal 2022. • Anticipate mid-single digit organic operating income growth. • Expect fiscal 2023 effective tax rate to be in the range of ap
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Use of Non-GAAP Financial Information.We use some financial measures in this presentation that are not measures of financial performance under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures, defined below, should be viewed as supplements to (not
Slide 13: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of the third quarter ended January 31, 2022, we changed certain non-GAAP financial measures that we have historically used. We no longer report “underlying changes” in certain measures of the statements of operations; instead, we now report “organic change” for
Slide 14: 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 15: Definitions (continued)
Definitions (continued) • “Tequila” includesthe Herradura family of brands (Herradura), el Jimador, and other tequilas. • “Wine” includes Korbel California Champagne and Sonoma-Cutrer wines. • “Vodka” includes Finlandia. • “Non-branded and bulk” includes our net sales of used barrels, contract bottl
Slide 16: Definitions (continued)
Definitions (continued) Other Metrics. • “Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this document, unless otherwise specified, we refer to shipments when discussing volume. • “Depletions.” This is a term commonly used in the beverage alcohol i
Slide 17: Geographic Reconciliation - First Quarter of Fiscal 2023
Geographic Reconciliation - First Quarter of Fiscal 2023 Acquisitions & Three months ended July 31, 2022 Reported Foreign Exchange (+/-) Organic1 Divestitures (+/-) United States 7% —% —% 7% Developed International 9% —% 10% 19% Emerging 17% —% 16% 34% Travel Retail 77% —% 8% 85% Acquisitions & Thre
Slide 18: Brown-Forman
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