Brown Forman Inc · NYSE:BF.A
Brown Forman — Q1 2024 Earnings Presentation
17 slides from Brown Forman's earnings presentation, Aug 30, 2023
Slide 1: First Quarter of Fiscal 2024
First Quarter of Fiscal 2024 August 30, 2023
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: First Quarter of Fiscal 2024
First Quarter of Fiscal 2024 GIN MARE & JACK DANIEL’S Reported net sales DIPLOMÁTICO NEW MIX EL JIMADOR TENNESSEE APPLE growth of 3% 2% 52% 27% 49% (+2% organic1) increase to the company’s net sales growth* net sales growth* net sales growth* net sales* (+32% organic1) (+26% organic1) (+52% organic1
Slide 4: First Quarter
FIRST QUARTER of Fiscal 2024 Reported Reported Acquisitions and Foreign Organic Change1 ($ in millions, Change Divestitures Exchange except per share (%) (+/-) (+/-) (%) amount) Net Sales $1,038 3% (2)% 1% 2% Gross Profit $651 5% (1)% 2% 5% Advertising $131 19% (5)% (1)% 14% Expense SG&A Expense $20
Slide 5: Across Categories
Across Categories REPORTED ORGANIC 1 (1)% —% Whiskey Whiskey 15% 22% Jack Daniel’s —% Jack Daniel’s 2% Family of Brands 11% Family of Brands 19% Jack Daniel’s —% Jack Daniel’s 2% Tennessee Whiskey 10% Tennessee Whiskey 21% 9% 5% Ready-to-Drink Ready-to-Drink 17% 21% 15% 12% Tequila Tequila (4)% (3)%
Slide 6: Broad-Based Net Sales Growth
BROAD-BASED NET SALES GROWTH Across Most Geographic Clusters Reflecting Normalization U.S. REPORTED ORGANIC 1 DEVELOPED REPORTED ORGANIC 1 CHANGE CHANGE CHANGE CHANGE 7% 7% 19% 5% 9% (8)% (9)% —% Q1 F24 Q1 F24 Q1 F24 Q1 F24 Q1 F23 Q1 F23 Q1 F23 Q1 F23 EMERGING REPORTED ORGANIC1 GLOBAL REPORTED ORGAN
Slide 7: Gross Margin Increased 90 Basis Points
Increased 90 Basis Points Driven by favorable price/mix, lower supply chain disruption related costs, and lower tariff-related costs. This growth was partially offset by higher input costs and the negative effect of foreign exchange. 2.5% 0.4% 62.7% 61.8% (1.0)% (0.6)% (0.3)% Q1 F23 Price/Mix Cost F
Slide 8: Fiscal 2024 Outlook
Organic1 net sales growth Anticipate 6% to 8% Expect full year effective Capital expenditures expected to be in the organic1 operating tax rate to be in range of are planned to be in the 5% to 7% range. income growth. approximately range of $250 to $270 21% to 23%. million. 1 See appendix for reconc
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 is a term commonly used in the beverage alcohol ind
Slide 14: First Quarter Reconciliation
FIRST QUARTER of Fiscal 2024 Reconciliation Acquisitions & Foundation Impairment Charges Foreign Exchange Three months ended July 31, 2023 Reported Organic Divestitures (+/-) (+/-) (+/-) (+/-) Net Sales 3% (2)% —% —% 1% 2% Gross Profit 5% (1)% —% —% 2% 5% Operating Expenses 16% (1)% —% —% 5% 19% Adv
Slide 15: Brand Reconciliation
BRAND RECONCILIATION First Quarter of Fiscal 2024 Net Sales Growth Three months ended July 31, 2023 Reported Acquisitions & Divestitures Foreign Exchange (+/-) Organic (+/-) Whiskey (1)% —% 2% —% Jack Daniel’s Family of Brands —% —% 2% 2% Jack Daniel’s Tennessee Whiskey —% —% 3% 2% Jack Daniel’s Ten
Slide 16: Geographic Reconciliation
GEOGRAPHIC RECONCILIATION First Quarter of Fiscal 2024 Net Sales Growth Acquisitions & Three months ended July 31, 2023 Reported Foreign Exchange (+/-) Organic Divestitures (+/-) United States (8)% (1)% —% (9)% Developed International 5% (4)% (1)% —% Emerging 27% (1)% 5% 32% Travel Retail 13% (3)% (
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.