Brown Forman Inc · NYSE:BF.A
Brown Forman — Q2 2026 Earnings Presentation
21 slides from Brown Forman's earnings presentation, Dec 4, 2025
Slide 1: First Half of Fiscal 2026
First Half of Fiscal 2026 December 4, 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: First Half of Fiscal 2026
Highlights: First Half of Fiscal 2026 (4)% (flat organic1) GEOGRAPHY Growth from Emerging International markets and the Travel Retail channel was more than offset by declines in Net sales declined due to the end of the Developed International markets and the U.S. Korbel relationship and the absence
Slide 4: First Half of Fiscal 2026 Results
First Half of Fiscal 2026 Results Reported Reported Acquisitions Other Foreign Organic ($ in millions, Change & Items1 Exchange Change2 except per (%) Divestitures (+/-) (+/-) (%) share amount) (+/-) Net Sales $1,960 (4)% 4% —% —% —% Gross Profit $1,167 (4)% 1% —% —% (3)% Advertising Expense $246 (2
Slide 5: Net Sales Across Categories
Net Sales Across Categories Reported REPORTED1H F26 1H F25 Organic 1 ORGANIC1 1H F26 1H F25 —% —% WHISKEY Whiskey WHISKEYWhiskey (1)% —% Jack Daniel’s (6)% (6)% JACK DANIEL’S TENNESSEE WHISKEY Tennessee Jack Daniel’s... JACK DANIEL’S TENNESSEE WHISKEY (1)% —% Whiskey 6% Woodford 6% WOODFORD RESERVE
Slide 6: Net Sales Across Geographic Aggregations
Net Sales Across Geographic Aggregations 1H F26 1H F25 1H F26 1H F25 U.S. DEVELOPED INTERNATIONAL REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 —% (3)% (3)% (4)% (5)% (6)% (7)% (9)% EMERGING TRAVEL RETAIL REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 10% 12% 6% 7%
Slide 7: Gross Margin
Gross Margin 1.9% —% Gross Margin Expansion (0.5)% 59.5% of 30 Basis Points 59.2% (1.1)% 1H F25 Acquisitions Foreign Price/Mix Cost 1H F26 & Exchange Divestitures Note: Results are on a reported basis and change is versus the prior-year period, unless otherwise noted. Totals may differ due to roundi
Slide 8: Fiscal 2026 Outlook
Fiscal 2026 Outlook Organic1 net sales Organic1 operating Capital expenditures range Effective tax rate in the decline in the income decline in the updated from $125 to $135 range of approximately low-single digit range. low-single digit range. million to $110 to $120 million. 21% to 23%. 1 See appe
Slide 9: Appendix
Appendix The Source of Our S T R E N G T H 9
Slide 10: Non-GAAP Financial Measures and Reconciliation: F26 vs. F25
Non-GAAP Financial Measures and Reconciliation: F26 vs. F25 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 this presentation that are not measures of
Slide 11: Non-GAAP Financial Measures and Reconciliation: F26 vs. F25 (cont.)
Non-GAAP Financial Measures and Reconciliation: F26 vs. F25 (cont.) • “Foreign exchange.” We calculate the percentage change in certain line items of the statements of operations in accordance with GAAP and adjust to exclude the cost or benefit of currency fluctuations. Adjusting for foreign exchang
Slide 12: Non-GAAP Financial Measures and Reconciliation: F25 vs. F24
Non-GAAP Financial Measures and Reconciliation: F25 vs. F24 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 this presentation that are not measures of
Slide 13: Non-GAAP Financial Measures and Reconciliation: F25 vs. F24 (cont.)
Non-GAAP Financial Measures and Reconciliation: F25 vs. F24 (cont.) We use the non-GAAP measure “organic change,” along with other metrics, to: (a) understand our performance from period to period on a consistent basis; (b) compare our performance to that of our competitors; (c) calculate components
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) • “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 16: 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 17: Year-to-Date of Fiscal 2026 and Fiscal 2025 Reconciliation
Year-to-Date of Fiscal 2026 and Fiscal 2025 Reconciliation Six months ended October 31, 2025 Acquisitions & Foreign Exchange Reported Other Items1 (+/-) Organic Divestitures (+/-) (+/-) Net Sales (4)% 4% —% —% —% Gross Profit (4)% 1% —% —% (3)% Operating Expenses 2 2% (1)% (2)% (2)% (2)% Advertising
Slide 18: Brand Reconciliation Year-to-Date Net Sales Growth
Brand Reconciliation Year-to-Date of Fiscal 2026 and Fiscal 2025 Net Sales Growth Six months ended October 31, 2025 Acquisitions & Foreign Exchange Reported Other Items1 (+/-) Organic Divestitures (+/-) (+/-) Whiskey —% —% —% —% —% Jack Daniel’s Tennessee Whiskey (6)% —% —% —% (6)% Woodford Reserve
Slide 19: Geographic Reconciliation Year-to-Date Net Sales Growth
Geographic Reconciliation Year-to-Date Fiscal 2026 and Fiscal 2025 Net Sales Growth Six months ended October 31, 2025 Acquisitions & Foreign Exchange Reported Other Items1 (+/-) Organic Divestitures (+/-) (+/-) United States (9)% 8% —% —% —% Developed International (4)% —% —% (2)% (6)% Emerging 10%
Slide 20: Supplemental Free Cash Flow Information
Supplemental Free Cash Flow Information For the Six Months Ended October 31, 2024 and 2025 2024 2025 Cash provided by operating activities $129 $292 Additions to property, plant, and equipment (72) (56) Free cash flow1 57 236 1 ” See “Non-GAAP Financial Measures and Reconciliation” for additional de
Slide 21: STRENGTH
DRE FONERR LOUISVILLE LOUISVILLE TELLENG JACKDANI ELE EMAN GENTL LO K JA CK TENNESSE E WHIS KEY MELLOWED DOUBLE OLD FORESTER OLDFORESTER THE 117 SERIES THE 117 SERIES SCOTCH CASK FINISH SCOTCH CASK FIMISH KENTUCKY STRAIGHT BOURBON WHISKY BOUREDN WHISKY KENTUCKY STRAIGHT BARPELS FINISHED IN SCOTCH BA