Brown Forman Inc · NYSE:BF.A
Brown Forman — Q4 2022 Earnings Presentation
22 slides from Brown Forman's earnings presentation, Jun 8, 2022
Slide 1: Fourth Quarter and Fiscal 2022 Results
Fourth Quarter and Fiscal 2022 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: Fiscal 2022 Highlights
• Double digit reported and organic top line results ◦ Jack Daniel’s Tennessee Whiskey +20% reported net sales growth (+23% organic) ◦ Broad-based geographic growth Fiscal 2022 Highlights • Reported gross margin expanded 30 basis points • Reported advertising expense +10% (+11% organic) • Returned $
Slide 4: Fiscal Year 2022 Results Across Key Metrics
Fiscal Year 2022 Results Across Key Metrics Fiscal Year Net Sales growth Reported % chg 14 % Organic1 % chg 17 % Fiscal Year Operating Income growth Reported % chg 3% Organic1 % chg 27 % EPS $/sh. % chg Fiscal Year $ 1.74 (7)% Q4 $ 0.31 26 % Notes - Change is versus prior-year period. Totals may dif
Slide 5: Strong Demand for Jack Daniel's Family of Brands
Strong Demand for Jack Daniel’s Family of Brands 5
Slide 6: Premiumization Benefiting Super-Premium Brands
Premiumization Benefiting Super-Premium Brands 6
Slide 7: Double-Digit Growth in Tequilas
Double-Digit Growth in Tequilas 7
Slide 8: Fiscal 2022 Strategic Areas of Focus
Fiscal 2022 Strategic Areas of Focus Pricing Route-to-consumer expansion Emerging brands growth Increased digital marketing in Europe and e-commerce capabilities 8
Slide 9: Living a Spirit of Commitment
Living a Spirit of Commitment 9
Slide 10: Strong Double-Digit Net Sales Growth Across All Geographies in Fiscal 2022
Strong Double-Digit Net Sales Growth Across All Geographies in Fiscal 2022 1 Reported Organic 10% 12% U.S. U.S. 3% 4% Developed 12% Developed 16% International 13% International 7% 24% 29% Emerging Emerging 1% 6% 65% 67% Travel Retail Travel Retail (50)% (50)% FY22 FY21 FY22 FY21 Notes - Change is v
Slide 11: Fiscal Year 2022 gross margin expanded 30 basis points
Fiscal Year 2022 gross margin expanded 30 basis points 1.3% 0.5% 60.8% 60.5% (0.2)% (1.3)% FY21 Price/Mix Cost/Mix Acquisitions & Foreign FY22 Divestitures Exchange 11
Slide 12: Fiscal Year 2022 Results
Fiscal Year 2022 Results Reported Acquisitions and Foundation Impairment Foreign Organic Change1 Change Divestitures (+/-) Charges Exchange (+/-) (+/-) (+/-) (%) (%) Net Sales 14% 2% —% —% 2% 17% Gross Profit 14% 1% —% —% 3% 17% Advertising 10% —% —% —% 2% 11% SG&A 3% —% 3% —% 1% 7% Operating Income
Slide 13: Fiscal 2023 Outlook
• Organic net sales growth expected to be in the mid-single digit range. • Reported gross margin projected to expand slightly compared to fiscal 2022. Fiscal 2023 Outlook • Anticipate mid-single digit organic operating income growth. • Expect fiscal 2023 effective tax rate to be in the range of appr
Slide 14: Appendix
@ BROWN-FORMAN Appendix
Slide 15: 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 16: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) • “Foundation.” During the fourth quarter of fiscal 2021, we committed $20 million to the Brown-Forman Foundation (the Foundation) to support the communities where our employees live and work. This adjustment removes the $20 million commitment to the Foundation fr
Slide 17: 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 18: 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 19: Brand Reconciliation - Fiscal 2022 Net Sales Growth
Brand Reconciliation - Fiscal 2022 Net Sales Growth Acquisitions & Twelve months ended April 30, 2022 Reported Foreign Exchange (+/-) Organic1 Divestitures (+/-) Jack Daniel's Tennessee Whiskey 20% —% 4% 23% Acquisitions & Twelve months ended April 30, 2022 Reported Foreign Exchange (+/-) Organic1 D
Slide 20: Geography Reconciliation - Fiscal 2022
Geography Reconciliation - Fiscal 2022 Acquisitions & Twelve months ended April 30, 2022 Reported Foreign Exchange (+/-) Organic1 Divestitures (+/-) United States 10% 2% —% 12% Developed International 12% —% 4% 16% Emerging 24% —% 5% 29% Travel Retail 65% 2% 1% 67% Acquisitions & Twelve months ended
Slide 21: Operating Expenses Reconciliation - Fiscal 2022
Operating Expenses Reconciliation - Fiscal 2022 Foreign Exchange Twelve months ended April 30, 2022 Reported Foundation Impairment Organic1 (+/-) Advertising 10% —% —% 2% 11% SG&A 3% 3% —% 1% 7% Total Operating Expenses1 13% 2% (6)% (1)% 8% Note - Change versus prior-year period Totals may differ du
Slide 22: @ BROWN-FORMAN
@ BROWN-FORMAN