Brown Forman Inc · NYSE:BF.A
Brown Forman — Q4 2021 Earnings Presentation
19 slides from Brown Forman's earnings presentation, Jun 9, 2021
Slide 1: Brown-Forman Twelve Months' Results April 30, 2021
BROWN-FORMAN TWELVE MONTH'S RESULTS APRIL 30, 2021 June 9, 2021
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: Long-Term Values
@ BROWN-FORMAN Long-Term Values . ~~ (hes a
Slide 4: Core Elements
Core Elements Resilience 4 4
Slide 5: Integrated Priorities
Integrated Priorities Resilience 5 5
Slide 6: Resilience Thank You
fi) BROWN-FORMAN Thank You
Slide 7: Fiscal 2021… A Strong Year
Fiscal 2021… A Strong Year Net Sales Gross Margin Operating Income & Diluted EPS • Underlying1 net sales grew 6% (+3% reported) • Declined 270 bps • Underlying1 operating income grew 4% (+7% ◦ Growth across all three IMF geographic reported) ◦ Higher input costs clusters ◦ Sustained A&P investment;
Slide 8: Accelerating Underlying Net Sales
Accelerating Underlying Net Sales Fiscal 2020 Change Fiscal 2021 Change U.S. 5% U.S. 10% Developed Developed (1)% 10% International International Emerging (1)% Emerging 6% Travel Retail -10% Travel Retail -48% Note - Change versus prior-year period See appendix for non-GAAP to GAAP reconciliations,
Slide 9: Convenience & Flavors Drove Milestones
Convenience & Flavors Resilience Drove Milestones Jack Daniel's RTDs depleted over 12 Million 9L Cases New Mix depleted 8 Million 9L Cases Jack Daniel's flavors depleted over 3 Million 9L Cases 9 9
Slide 10: Premiumization Trends Continue
Premiumization Trends Continue Resilience 10 10
Slide 11: Gross Margin Declined 270 bps
Gross Margin Declined 270 bps Higher input costs, lower fixed cost absorption, and unfavorable mix shifts 63.2% (0.5)% 60.5% (2.0)% (0.2)% FY20 Price/Mix Cost Acquisitions & FY21 Divestitures 11
Slide 12: Increasing Brand Investment
Increasing Brand Investment Resilience 12 12
Slide 13: Fiscal 2021 Full Year Results Resilient Amidst A Difficult Environment
Fiscal 2021 Full Year Results Resilient Amidst A Difficult Environment Acquisitions Estimated Reported Foreign and Foundation Net Change Underlying Change Chambord Exchange Divestitures (+/-) In Change (%) Impairment Impact (+/-) Distributor (%) (+/-) (+/-) Inventories (+/-) Net Sales 3% —% —% —% -1
Slide 14: Fiscal 2022 Outlook
Fiscal 2022 Outlook • Optimistic as we look ahead • Expect: ◦ Mid-single digit growth in underlying net sales and operating income ◦ Operating investments aligned in this range ◦ Effective tax rate from operations to be ~ 21%-22% 14
Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation We use certain financial measures in this presentation that are not measures of financial performance under GAAP. These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results of operations and other measures reported under GAAP.
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 spirits category. Below
Slide 18: Definitions
Definitions Other Metrics. • “Depletions.” We generally record revenues when we ship our products to our customers. “Depletions” is a term commonly used in the beverage alcohol industry to describe volume. Depending on the context, “depletions” means either (a) our shipments directly to retail or wh
Slide 19: Reconciliation – Fiscal 2021 and 2020 Net Sales Growth by Geographic Area
Reconciliation – Fiscal 2021 and 2020 Net Sales Growth by Geographic Area* Twelve months ended April 30, 2021 Estimated Net Acquisitions & Foreign Exchange Geographic Area Reported Change in Distributor Underlying Divestitures (+/-) (+/-) Inventories (+/-) United States 3% 1% —% 6% 10% Developed Int