Brown Forman Inc · NYSE:BF.A
Brown Forman — Q4 2024 Earnings Presentation
24 slides from Brown Forman's earnings presentation, Jun 5, 2024
Slide 1: Fourth Quarter and Fiscal 2024
Fourth Quarter and Fiscal 2024 June 5, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contain 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,” “ex
Slide 3: Fiscal 2024
Fiscal 2024 JACK DANIEL’S GIN MARE & TENNESSEE WHISKEY DIPLOMÁTICO NEW MIX (6)% 61% 32% reported net sales decline reported net sales growth for reported net sales growth (-5% organic1) Rest of Portfolio driven by (+17% organic1) Gin Mare and Diplomático (+15%organic1) Net sales Gross margin Pre-tax
Slide 4: Fiscal 2024 Results
FISCAL 2024 RESULTS Reported Reported Acquisitions Impairment Other Foreign Organic ($ in millions, Change and Charges Items1 Exchange Change2 except per (%) Divestitures (+/-) (+/-) (+/-) share amount) (+/-) (%) Net Sales $4,178 (1)% (1)% —% —% —% (1)% Gross Profit $2,526 1% —% —% —% 2% 2% Advertis
Slide 5: Global Trends are Normalizing after Two Years of Very Strong Growth
Global Trends are Normalizing after Two Years of Very Strong Growth 1 REPORTED ORGANIC 5% TOTAL PORTFOLIO 6% TOTAL PORTFOLIO 5 year CAGR 5 year CAGR 17% 14% 10% 8% 3% 2% 2% 1% (1%) (1%) FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Notes - Change is versus prior-year period. Totals may differ du
Slide 6: Across Categories
Across Categories 1 REPORTED ORGANIC (3)% (2)% WHISKEY Whiskey 6% WHISKEY Whiskey 10% 1% 4% JackWHISKEY Daniel’s (6)% Jack Daniel’s (5)% JACK DANIEL’S TENNESSEE 3% JACK DANIEL’S TENNESSEE WHISKEY 8% Tennessee Whiskey (2)% Tennessee Whiskey 1% Jack Daniel’s JACK DANIEL’S TENNESSEE APPLE (7)% 32% Jack
Slide 7: 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 4% 1% 10% 3% 3% 2% (4)% (1)% (4)% (1)% (2)% (5)% FY24 FY24 FY24 FY24 FY23 FY23 FY23 FY23 FY23/24 CAGR FY23/24 CAGR FY23/24 CAGR FY23/24 CAGR ORGANI
Slide 8: Gross Margin Increased 150 Basis Points
Increased 150 Basis Points Gross margin expansion driven by favorable price/mix and lower supply chain disruption related costs, partially offset by higher input costs and the negative effect of foreign exchange. 2.8% 0.1% 60.5% (0.8)% 59.0% (0.5)% 1 FY23 Price/Mix Foreign Exchange Cost Other FY F24
Slide 9: Fiscal 2025 Outlook
Organic1 net sales growth Organic1 operating Effective tax rate to be in Capital expenditures in the 2% to 4% range. income growth in the range of approximately planned to be in the 2% to 4% range. 21% to 23%. range of $195 to $205 million. 1 See appendix for reconciliations from GAAP measures to mo
Slide 10: Appendix
APPENDIX BOLDER. BETTER. TOGETHER. @ prown-FORMAN NOTHING BETTER IN THE MARKET Te
Slide 11: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and Reconciliation 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 substitutes fo
Slide 12: Non-GAAP Reconciliation: Twelve months ended April 30, 2021
Non-GAAP Financial Measures and Reconciliation Twelve months ended April 30, 2021 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, tran
Slide 13: Non-GAAP Reconciliation: Twelve months ended April 30, 2022
Non-GAAP Financial Measures and Reconciliation Twelve months ended April 30, 2022 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, tran
Slide 14: Non-GAAP Reconciliation: Twelve months ended April 30, 2023
Non-GAAP Financial Measures and Reconciliation Twelve months ended April 30, 2023 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, tran
Slide 15: Non-GAAP Reconciliation: Twelve months ended April 30, 2024
Non-GAAP Financial Measures and Reconciliation Twelve months ended April 30, 2024 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, tran
Slide 16: Non-GAAP Reconciliation: Other Items
Non-GAAP Financial Measures and Reconciliation • “Other Items.” Other Items include the additional items outlined below. “Foundation.” During the fourth quarter of fiscal 2024, we committed $23 million to the Brown-Forman Foundation and Dendrifund (the Foundation and Dendrifund) to support the commu
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 beverage alcohol catego
Slide 18: 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 19: 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 is a term commonly used in the beverage alcoho
Slide 20: Year-to-Date Fiscal 2024 and 2023 Reconciliation
YEAR-TO-DATE Fiscal 2024 and 2023 Reconciliation Acquisitions & Impairment Charges Other Items1 Foreign Exchange Twelve months ended April 31, 2024 Reported Organic Divestitures (+/-) (+/-) (+/-) (+/-) Net Sales (1)% (1)% —% —% —% (1)% Gross Profit 1% —% —% —% 2% 2% Operating Expenses 1% 2% 8% (2)%
Slide 21: Total Portfolio Reconciliation
TOTAL PORTFOLIO RECONCILIATION Historical Trends - Net Sales Growth Acquisitions & Impairment Charges JDCC1 Foreign Exchange Fiscal Year Reported Organic Divestitures (+/-) (+/-) (+/-) (+/-) Twelve months ended April 30, 2024 (1)% (1)% —% —% —% (1)% Twelve months ended April 30, 2023 8% —% —% —% 3%
Slide 22: Brand Reconciliation
BRAND RECONCILIATION Fiscal 2024 and 2023 Net Sales Growth Twelve months ended April 30, 2024 Reported Acquisitions & Divestitures (+/-) JDCC1 (+/-) Foreign Exchange (+/-) Organic Whiskey (3)% —% —% 1% (2)% Jack Daniel’s Tennessee Whiskey (6)% —% —% 2% (5)% Jack Daniel’s Tennessee Honey (8)% —% —% —
Slide 23: Geographic Reconciliation
GEOGRAPHIC RECONCILIATION Fiscal 2024 and 2023 Net Sales Growth Acquisitions & Twelve months ended April 30, 2024 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) United States (4)% —% —% —% (4)% Developed International (2)% (2)% —% —% (5)% Emerging 5% 1% —% 2% 8% Travel Retail
Slide 24: 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.