Brown Forman Inc · NYSE:BF.A
Brown Forman — Q3 2025 Earnings Presentation
18 slides from Brown Forman's earnings presentation, Mar 5, 2025
Slide 1: A World of Opportunity: Third Quarter and Year-to-Date Fiscal 2025
A World of OPPORTUNITY THIRD QUARTER AND YEAR-TO-DATE FISCAL 2025 March 5, 2025
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: Year-to-Date Fiscal 2025
Highlights: Year-to-Date Fiscal 2025 Net sales FINLANDIA & GEOGRAPHIC decreased SONOMA-CUTRER AGGREGATIONS 4% DIVESTITURES Net sales declines were Net sales declined across all geographic aggregations with sequential (+2% organic1) largely driven by the improvement in the United States and Finlandia
Slide 4: Year-to-Date Fiscal 2025
Year-to-Date Fiscal 2025 Reported Reported Acquisitions Other Foreign Organic ($ in millions, Change and Items1 Exchange Change2 except per (%) Divestitures (+/-) (+/-) (%) share amount) (+/-) Net Sales $3,081 (4)% 3% 1% 2% 2% Gross Profit $1,830 (6)% 3% —% 3% (1)% Advertising Expense $377 (9)% 2% —
Slide 5: Net Sales Across Categories
Net Sales Across Categories REPORTED ORGANIC1 —% 2% Whiskey WHISKEY (2)% Whiskey WHISKEY (1)% 1% 2% Jack Daniel’... JACK DANIEL’S TENNESSEE WHISKEY (6)% Jack Daniel’s... JACK DANIEL’S TENNESSEE WHISKEY (5)% 10% 10% Woodford WOODFORD R... RESERVE 2% Woodford WOODFORD Re... RESERVE 2% 12% 12% Old OLDF
Slide 6: Net Sales Across Geographic Aggregations
Net Sales Across Geographic Aggregations REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE1 U.S. DEVELOPED INTERNATIONAL (1)% (1)% (2)% (2)% (1)% (5)% (5)% (6)% YTD F25 YTD F25 YTD F25 YTD F25 YTD F24 YTD F24 YTD F24 YTD F24 REPORTED CHANGE ORGANIC CHANGE1 REPORTED CHANGE ORGANIC CHANGE
Slide 7: Gross Margin Contraction of 150 Basis Points
Gross Margin Contraction of 150 Basis Points 1.6% 0.5% 0.3% 60.9% (0.7)% 59.4% Gross margin decline largely driven by higher costs and the (3.2)% negative effect of foreign exchange, partially offset by favorable price/mix. 1 YTD F24 Price/Mix JDCC Acquisitions Foreign Cost YTD F25 & Exchange Divest
Slide 8: FY 2025 Outlook: Organic Growth Reaffirmed
FY 2025 Outlook Organic Growth Reaffirmed Organic1 net sales growth in Organic operating income Capital expenditures to be in the Forecasted effective tax rate the 2% to 4% range. growth in the 2% to 4% range. range of $180 to $190 million. updated to be in the range of approximately 20% to 22%. 1 S
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) “Foreign exchange.” We calculate the percentage change in certain line items of the statements of operations in accordance with GAAP and adjust to exclude the cost or benefit of currency fluctuations. Adjusting for foreign exchange allows us
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: Year-to-Date of Fiscal 2025 and Fiscal 2024 Reconciliation
Year-to-Date of Fiscal 2025 and Fiscal 2024 Reconciliation Acquisitions & Impairment Charges Nine months ended January 31, 2025 Reported Other Items1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) (+/-) Net Sales (4)% 3% —% 1% 2% 2% Gross Profit (6)% 3% —% —% 3% (1)% 2 Operating Expenses (8
Slide 16: Brand Reconciliation Year-to-Date Fiscal 2025 and Fiscal 2024 Net Sales Growth
Brand Reconciliation Year-to-Date Fiscal 2025 and Fiscal 2024 Net Sales Growth Acquisitions & Divestitures Nine months ended January 31, 2025 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic (+/-) Whiskey —% —% —% 1% 2% Jack Daniel’s Tennessee Whiskey 1% —% —% 2% 2% Woodford Reserve 10% —% —% —%
Slide 17: Geographic Reconciliation Year-to-Date Fiscal 2025 and Fiscal 2024 Net Sales Growth
Geographic Reconciliation Year-to-Date Fiscal 2025 and Fiscal 2024 Net Sales Growth Acquisitions & Nine months ended January 31, 2025 Reported JDCC1 (+/-) Foreign Exchange (+/-) Organic Divestitures (+/-) United States (5)% 3% 2% —% (1)% Developed International (5)% 2% —% 2% (1)% Emerging (4)% 6% —%
Slide 18: A World of Opportunity
9) BROWN-FORMAN AWorld of