Brown Forman Inc · NYSE:BF.A
Brown Forman — Q4 2023 Earnings Presentation
19 slides from Brown Forman's earnings presentation, Jun 7, 2023
Slide 1: Fourth Quarter and Fiscal 2023 Results
Fourth Quarter and Fiscal 2023 Results June 7, 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: Fiscal 2023 Highlights
Fiscal 2023 Highlights Reported net sales growth of +8% (+10% organic1) Woodford Reserve Jack Daniel’s Tennessee Whiskey +26% reported net sales growth 1 (+27% organic ) +3% reported net sales growth (+8% organic1) Jack Daniel’s RTD/RTP +11% reported net sales growth (+16% organic1) Reported gross m
Slide 4: Fiscal 2023 Results
Fiscal 2023 Results Reported Reported Acquisitions and Impairment Foreign Organic Change1 ($ in millions, Change Divestitures Charges Exchange except per share (%) (+/-) (+/-) (+/-) (%) amount) Net Sales $4,228 8% —% —% 3% 10% Gross Profit $2,494 4% (1)% —% 5% 9% Advertising $506 15% (1)% —% 4% 18%
Slide 5: Net Sales Across Categories
Fiscal 2023 Net Sales Across Categories REPORTED ORGANIC 1 6% 10% Whiskey Whiskey 14% 19% Jack Daniel’s Family 4% Jack Daniel’s Family 9% of Brands 15% of Brands 17% Jack Daniel’s 3% Jack Daniel’s 8% Tennessee Whiskey 20% Tennessee Whiskey 23% 23% 24% Premium Bourbons Premium Bourbons 17% 17% 18% 20
Slide 6: Broad-Based Net Sales Growth Across Geographic Clusters
Fiscal 2023 Broad-Based Net Sales Growth Across Geographic Clusters U.S. REPORTED ORGANIC DEVELOPED REPORTED ORGANIC 1 1 CHANGE CHANGE CHANGE CHANGE 12% 12% 16% 10% 10% 3% 3% 4% FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 EMERGING REPORTED ORGANIC1 GLOBAL REPORTED ORGANIC 1 CHANGE CHANGE TRAVEL RETAIL C
Slide 7: Fiscal Year 2023 Gross Margin
Fiscal Year 2023 Gross margin decreased 180 basis points driven by inflation, supply chain disruption costs and foreign exchange, partially offset by favorable price/mix and removal of tariffs. 60.8% 1.4% —% 1.9% 59.0% (1.0)% (4.1)% FY22 Cost Price/Mix Removal of Acquisitions & Foreign FY23 (Excludi
Slide 8: Fiscal 2024 Outlook
Fiscal 2024 Outlook Organic1 net sales growth expected to be in the 5% to 7% range. Anticipate 6% to 8% organic1 operating income growth. Expect full year effective tax rate to be in range of approximately 21% to 23%. Capital expenditures are planned to be in the range of $250 to $270 million. 1 See
Slide 9: Appendix
Appendix NOTHING BETTER IN THE MARKET. @ BROWN-FORMAN 9
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: 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
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 exten
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 report, unless otherwise specified, we refer to shipments when discussing volume. • “Depletions.” This is a term commonly used in the beverage alcohol ind
Slide 15: Fiscal 2023 Results Reconciliation
Fiscal 2023 Results Reconciliation Acquisitions & Foundation Impairment Charges Foreign Exchange Twelve months ended April 30, 2023 Reported Organic Divestitures (+/-) (+/-) (+/-) (+/-) Net Sales 8% —% —% —% 3% 10% Gross Profit 4% (1)% —% —% 5% 9% Operating Expenses 15% (5)% —% (3)% 3% 11% Advertisi
Slide 16: Fiscal 2023 Historical Organic Trends - Net Sales
Fiscal 2023 Historical Organic Trends - Net Sales Acquisitions & Impairment Charges Foreign Exchange Fiscal Year Reported Organic Divestitures (+/-) (+/-) (+/-) Fiscal 2023 8% —% —% 3% 10% Fiscal 2022 14% 2% —% 2% 17% Fiscal 2021 3% —% —% -1% 2% Fiscal 2020 1% —% —% 1% 2% Notes - Change is versus pr
Slide 17: Brand Reconciliation - Fiscal 2023 Net Sales Growth
Brand Reconciliation - Fiscal 2023 Net Sales Growth Acquisitions & Twelve months ended April 30, 2023 Reported Foreign Exchange (+/-) Organic Divestitures (+/-) Whiskey 6% —% 4% 10% Jack Daniel’s Family of Brands 4% —% 5% 9% Jack Daniel’s Tennessee Whiskey 3% —% 5% 8% Premium Bourbons 23% —% 1% 24%
Slide 18: Geographic Reconciliation - Fiscal 2023 Net Sales Growth
Geographic Reconciliation - Fiscal 2023 Net Sales Growth Acquisitions & Twelve months ended April 30, 2023 Reported Foreign Exchange (+/-) Organic Divestitures (+/-) United States 3% —% —% 3% Developed International 4% (1)% 7% 10% Emerging 18% —% 6% 24% Travel Retail 41% (2)% 4% 43% Acquisitions & T
Slide 19: Brown-Forman
@) BROWN-FORMAN