Slide 1: A World of Opportunity: First Half Fiscal 2025
A World of OPPORTUNITY FIRST HALF FISCAL 2025 December 5, 2024
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 Fiscal 2025
Highlights: First Half Fiscal 2025 Net sales FINLANDIA & GEOGRAPHIC decreased SONOMA-CUTRER AGGREGATIONS 5% DIVESTITURES Net sales declines were Net sales declined across all geographic aggregations, but (flat organic1) largely due to the improved sequentially in Finlandia and Sonoma- international
Slide 4: First Half Fiscal 2025
First Half Fiscal 2025 Reported Reported Acquisitions Other Foreign Organic ($ in millions, Change and Items1 Exchange Change2 except per (%) Divestitures (+/-) (+/-) (%) share amount) (+/-) Net Sales $2,046 (5)% 3% 1% 1% —% Gross Profit $1,211 (8)% 3% —% 1% (4)% Advertising Expense $252 (7)% 2% —%
Slide 5: Net Sales Across Categories
Net Sales Across Categories REPORTED ORGANIC1 (1)% —% Whiskey WHISKEY (2)% Whiskey WHISKEY (1)% (1)% —% Jack Daniel’... JACK DANIEL’S TENNESSEE WHISKEY (4)% Jack Daniel’s... JACK DANIEL’S TENNESSEE WHISKEY (2)% 8% WOODFORD RESERVE 8% WOODFORD Woodford RESERVE R... Woodford Re... (3)% (3)% 11% 11% Ol
Slide 6: Net Sales Across Geographic Aggregations
Net Sales Across Geographic Aggregations REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 U.S. DEVELOPED INTERNATIONAL 3% (4)% (3)% (5)% (5)% (3)% (2)% (7)% 1H F25 1H F25 1H F25 1H F25 1H F24 1H F24 1H F24 1H F24 REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 EMERGING
Slide 7: Gross Margin Contraction of 240 Basis Points
Gross Margin Contraction of 240 Basis Points 61.6% 1.7% 0.5% Gross margin decline was largely driven by (0.3)% (0.4)% the timing of input cost fluctuations 59.2% coupled with high inventory levels, the (3.9)% negative effect of foreign exchange, and the impact of the transition services agreements (
Slide 8: FY 2025 Outlook Growth Reaffirmed
FY 2025 Outlook Growth Reaffirmed Organic1 net sales growth in Organic1 operating income Effective tax rate to be in Capital expenditures the 2% to 4% range. growth in the 2% to 4% range. the range of approximately updated to be in the range 21% to 23%. of $180 to $190 million. 1 See appendix for re
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 this presentation that are not measures of financial per
Slide 11: Non-GAAP Financial Measures and Reconciliation (continued)
Non-GAAP Financial Measures and 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 manag
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 alcoho
Slide 15: Year-to-Date Fiscal 2025 and Fiscal 2024 Reconciliation
Year-to-Date of Fiscal 2025 and Fiscal 2024 Reconciliation Acquisitions & Six months ended October 31, 2024 Reported Other Items1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) Net Sales (5)% 3% 1% 1% —% Gross Profit (8)% 3% —% 1% (4)% 2 Operating Expenses (10)% 3% 2% 1% (4)% Advertising Ex
Slide 16: Brand Reconciliation Year-to-Date Net Sales Growth
Brand Reconciliation Year-to-Date Fiscal 2025 and Fiscal 2024 Net Sales Growth Acquisitions & Divestitures Six months ended October 31, 2024 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic (+/-) Whiskey (1)% —% —% 1% —% Jack Daniel’s Tennessee Whiskey (1)% —% —% —% —% Woodford Reserve 8% —% —% —
Slide 17: Geographic Reconciliation Year-to-Date Net Sales Growth
Geographic Reconciliation Year-to-Date Fiscal 2025 and Fiscal 2024 Net Sales Growth Acquisitions & Six months ended October 31, 2024 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) United States (7)% 2% 2% —% (3)% Developed International (5)% 2% —% —% (3)% Emerging (3)% 6% —%
Slide 18: A World of Opportunity
@ BROWN-FORMAN A World of OPPORTUNITY