Brown Forman Inc · NYSE:BF.A
Brown Forman — Q3 2022 Earnings Presentation
20 slides from Brown Forman's earnings presentation, Mar 3, 2022
Slide 1: Third Quarter and Year-to-Date Fiscal 2022 Results
Third Quarter and Year-to-Date 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: Year-to-Date Fiscal 2022 Themes
• Top line acceleration ◦ On-premise reopening ◦ Return of travel Year-to-Date ◦ Favorable prior-year comparison Fiscal 2022 Themes • Favorable category exposure ◦ American whiskey ◦ Tequila • Supply chain disruption ◦ Glass ◦ Inventory impacts 3
Slide 4: Strong Year-to-Date (YTD) Results Across Key Metrics
Strong Year-to-Date (YTD) Results Across Key Metrics YTD Net Sales growth Reported % chg 11 % ñ Organic1 % chg 14 % ñ YTD Operating Income growth Reported % chg (4)% ò Organic % chg 19 % ñ EPS $/sh. % chg YTD $ 1.43 (12)% ò Q3 $ 0.54 19 % ñ Notes - Change is versus prior-year period. Totals may diff
Slide 5: Strong Demand for Jack Daniel's
Strong Demand for Jack Daniel’s 5
Slide 6: Double-Digit Growth in Tequilas
Double-Digit Growth in Tequilas 6
Slide 7: Strong Consumer Demand for Woodford Reserve
Strong Consumer Demand for Woodford Reserve 7
Slide 8: Seeding Our Emerging Brands
Seeding Our Emerging Brands 8
Slide 9: Strong Growth Across All Geographies
Strong Growth Across All Geographies 1 Reported Organic 3% 3% U.S. U.S. 5% 8% Developed 10% Developed 5% International 12% International 15% (8)% (2)% Emerging Emerging 22% 27% (55)% (55)% Travel Retail Travel Retail 57% 58% YTD21 YTD22 YTD21 YTD22 Notes - Change is versus prior-year period. Totals
Slide 10: YTD Gross Margin contracted 20 bps driven by Cost/Mix
YTD Gross Margin contracted 20 bps driven by Cost/Mix 0.7% 60.3% 0.5% 60.1% (0.3)% (1.1)% YTD F21 Price/Mix Cost/Mix Acquisitions & Foreign YTD F22 Divestitures Exchange 10
Slide 11: Year-to-Date Fiscal 2022 Results
Year-to-Date Fiscal 2022 Results Reported Acquisitions and Impairment Foreign Organic Change1 Change Divestitures Charges Exchange (+/-) (+/-) Impact (%) (%) (+/-) Net Sales 11% 2% —% 2% 14% Gross Profit 11% 1% —% 2% 14% Advertising 12% —% —% —% 12% SG&A 8% —% —% —% 8% Operating Income -4% 16% 1% 6%
Slide 12: Well positioned to deliver strong results in Fiscal 2022
The Fiscal 2022 outlook* is as follows: 1. Organic net sales growth is expected to be 11% to 13%. 2. Reported gross margin is expected to be flat or slightly Well positioned to deliver down compared to fiscal 2021. strong results in Fiscal 2022 3. Organic operating expense growth is expected to be 7
Slide 13: Appendix
@ BROWN-FORMAN Appendix
Slide 14: 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 15: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 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 of management incentive compens
Slide 16: 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 17: 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 18: Brand Reconciliation - Year-to-Date Fiscal 2022 Net Sales Growth
Brand Reconciliation - Year-to-Date Fiscal 2022 Net Sales Growth Acquisitions & Nine months ended January 31, 2022 Reported Foreign Exchange (+/-) Organic1 Divestitures (+/-) Jack Daniel's Tennessee Whiskey 17% —% 3% 20% Acquisitions & Nine months ended January 31, 2022 Reported Foreign Exchange (+/
Slide 19: Geography Reconciliation - Year-to-Date Fiscal 2021 & 2022 Net Sales Growth
Geography Reconciliation - Year-to-Date Fiscal 2021 & 2022 Net Sales Growth Acquisitions & Nine months ended January 31, 2022 Reported Foreign Exchange (+/-) Organic1 Divestitures (+/-) United States 5% 3% —% 8% Developed International 12% —% 3% 15% Emerging 22% —% 5% 27% Travel Retail 57% 2% -1% 58
Slide 20: @ BROWN-FORMAN
@ BROWN-FORMAN