Brown Forman Inc · NYSE:BF.A
Brown Forman — Q2 2024 Earnings Presentation
17 slides from Brown Forman's earnings presentation, Dec 6, 2023
Slide 1: First Half Fiscal 2024
First Half Fiscal 2024 December 6, 2023
Slide 2: First Half Fiscal 2024
First Half Fiscal 2024 GIN MARE & JACK DANIEL’S JACK DANIEL’S Reported net sales DIPLOMÁTICO NEW MIX TENNESSEE APPLE TENNESSEE WHISKEY growth of 2% 2% 41% 51% (4)% (+1% organic1) increase to the company’s reported net sales decline reported net sales growth reported net sales growth reported net sal
Slide 3: 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 4: First Half Fiscal 2024
FIRST HALF Fiscal 2024 Reported Reported Acquisitions and Foreign Organic Change1 ($ in millions, Change Divestitures Exchange except per share (%) (+/-) (+/-) (%) amount) Net Sales $2,145 2% (2)% —% 1% Gross Profit $1,322 7% (1)% 1% 7% Advertising $271 17% (5)% (1)% 12% Expense SG&A Expense $392 10
Slide 5: Across Categories
Across Categories 1 REPORTED ORGANIC (2)% (1)% WHISKEY Whiskey 13% WHISKEY Whiskey 20% 5% 9% JackOF Daniel’s (1)% Jack Daniel’s —% . JACK DANIEL’S FAMILY BRANDS 9% JACK DANIEL’S FAMILY OF BRANDS 17% Family of Brands 4% Family of Brands 8% Jack Daniel’s JACK DANIEL’S TENNESSEE WHISKEY (4)% 9% JackWHI
Slide 6: Net Sales Growth Across Most Geographic Clusters Reflecting Normalization
NET SALES GROWTH Across Most Geographic Clusters Reflecting Normalization U.S. REPORTED CHANGE ORGANIC CHANGE1 DEVELOPED REPORTED CHANGE ORGANIC CHANGE1 11% 3% 11% 14% 3% 3% 3% 3% 6% (4)% (5)% (2)% 1H F24 1H F24 1H F24 1H F24 1H F23 1H F23 1H F23 1H F23 1H F23/F24 CAGR 1H F23/F24 CAGR 1H F23/F24 CAG
Slide 7: Gross Margin Increased 280 Basis Points
Increased 280 Basis Points Fueled by favorable price/mix, lapping of costs related to supply chain disruptions in the same prior-year period and lower tariff-related costs partially offset by higher input costs and the negative effect of foreign exchange. 3.3% 0.1% 0.3% 61.6% 58.8% (0.7%) (0.1%) H1
Slide 8: Fiscal 2024 Outlook
Organic1 net sales growth Expect 4% to 6% Expect full year effective Capital expenditures in the 3% to 5% range. organic1 operating tax rate to be in range of are planned to be in the income growth. approximately range of $250 to $270 21% to 23%. million. 1 See appendix for reconciliations from Non-
Slide 9: Appendix
APPENDIX BOLDER. BETTER. TOGETHER. @ prown-FORMAN NOTHING BETTER IN THE MARKET T°
Slide 10: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and 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 viewe
Slide 11: 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 12: 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 13: Definitions (continued)
Definitions (continued) Other Metrics. • “Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this report, unless otherwise specified, we refer to shipments when discussing volume. • “Depletions.” This metric is commonly used in the beverage alcohol ind
Slide 14: First Half Fiscal 2024 Reconciliation
FIRST HALF Fiscal 2024 Reconciliation Acquisitions & Impairment Charges Foreign Exchange Six months ended October 31, 2023 Reported Organic Divestitures (+/-) (+/-) (+/-) Net Sales 2% (2)% —% —% 1% Gross Profit 7% (1)% —% 1% 7% Operating Expenses 13% (2)% —% 2% 13% Advertising Expense 17% (5)% —% (1
Slide 15: Brand Reconciliation
BRAND RECONCILIATION First Half of Fiscal 2024 Net Sales Growth Six months ended October 31, 2023 Reported Acquisitions & Divestitures Foreign Exchange (+/-) Organic (+/-) Whiskey (2)% —% 1% (1)% Jack Daniel’s Family of Brands (1)% —% 1% —% Jack Daniel’s Tennessee Whiskey (4)% —% 1% (2)% Jack Daniel
Slide 16: Geographic Reconciliation
GEOGRAPHIC RECONCILIATION First Half of Fiscal 2024 Net Sales Growth Acquisitions & Six months ended October 31, 2023 Reported Foreign Exchange (+/-) Organic Divestitures (+/-) United States (4)% (1)% —% (5)% Developed International 3% (4)% (2)% (2)% Emerging 17% (1)% 2% 19% Travel Retail 3% (2)% (1
Slide 17: Brown-Forman
@ BROWN-FORMAN § (© ~ sour masw os > p>) } WHISKEY { 8 3) 70c! 40% Vol. || Ge chet | { JACK DANIEL DISTILLERY | ‘\ LYNCHBURG, TENNESSEE 37352 U.s.4, S oo, et OGETHER.