Brown Forman Inc · NYSE:BF.A
Brown Forman — Q1 2025 Earnings Presentation
18 slides from Brown Forman's earnings presentation, Aug 29, 2024
Slide 1: A World of Opportunity: First Quarter of Fiscal 2025
A World of OPPORTUNITY FIRST QUARTER OF FISCAL 2025 August 29, 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 Quarter of Fiscal 2025
Highlights: First Quarter of Fiscal 2025 Net sales DIPLOMÁTICO OLD FORESTER WOODFORD JACK DANIEL’S FINLANDIA decreased 142% 16% RESERVE TENNESSEE WHISKEY DIVESTITURE 8% 3% (8)% (-4% organic1) net sales growth net sales growth net sales growth net sales decline contributed to (+134%organic1) (+16%org
Slide 4: First Quarter of Fiscal 2025
First Quarter of Fiscal 2025 Reported Reported Acquisitions Other Foreign Organic ($ in millions, Change and Items1 Exchange Change2 except per (%) Divestitures (+/-) (+/-) (%) share amount) (+/-) Net Sales $951 (8)% 2% 1% 2% (4)% Gross Profit $565 (13)% 4% —% 2% (8)% Advertising Expense $126 (4)% 2
Slide 5: Net Sales Growth Across Categories
Net Sales Growth Across Categories REPORTED ORGANIC 1 (5)% (3)% Whiskey WHISKEY (1)% Whiskey WHISKEY —% (8)% (6)% Jack Daniel’... JACK DANIEL’S TENNESSEE WHISKEY —% Jack Daniel’s... JACK DANIEL’S TENNESSEE WHISKEY 2% 3% WOODFORD RESERVE 3% WOODFORD Woodford RESERVE R... Woodford Re... (9)% (8)% 16%
Slide 6: Net Sales Declines Across Geographic Aggregations
Net Sales Declines Across Geographic Aggregations REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 U.S. DEVELOPED 5% —% (4)% (9)% (6)% (5)% (8)% (9)% Q1 F25 Q1 F25 Q1 F25 Q1 F25 Q1 F24 Q1 F24 Q1 F24 Q1 F24 REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 EMERGING 27% 32
Slide 7: Gross Margin Reduction of 330 Basis Points
Gross Margin Reduction of 330 Basis Points 2.0% 0.7% Gross margin decline was largely driven by (0.3)% 62.7% the timing of input cost fluctuations (1.4)% coupled with high inventory levels, as well as the impact of the transition services 59.4% agreements (TSAs) for the divestitures of Finlandia and
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 planned to be in the range 21% to 23%. of $195 to $205 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: First Quarter of Fiscal 2025 Reconciliation
First Quarter of Fiscal 2025 Reconciliation Acquisitions & Three months ended July 31, 2024 Reported Other Items1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) Net Sales (8)% 2% 1% 2% (4)% Gross Profit (13)% 4% —% 2% (8)% Operating Expenses (12)% 4% 4% 1% (3)% Advertising Expense (4)% 2% —
Slide 16: Brand Reconciliation First Quarter of Fiscal 2025 Net Sales Growth
Brand Reconciliation First Quarter of Fiscal 2025 Net Sales Growth Acquisitions & Divestitures Three months ended July 31, 2024 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic (+/-) Whiskey (5)% —% —% 2% (3)% Jack Daniel’s Tennessee Whiskey (8)% —% —% 2% (6)% Woodford Reserve 3% —% —% —% 3% Old
Slide 17: Geographic Reconciliation First Quarter of Fiscal 2025 Net Sales Growth
Geographic Reconciliation First Quarter of Fiscal 2025 Net Sales Growth Acquisitions & Three months ended July 31, 2024 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) United States (5)% (1)% —% —% (4)% Developed International (9)% 2% —% 1% (6)% Emerging (16)% 5% —% 6% (5)% Tr
Slide 18: A World of Opportunity: First Quarter of Fiscal 2025
A World of OPPORTUNITY FIRST QUARTER OF FISCAL 2025 August 29, 2024