NYSE$BF-A

Brown Forman Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Brown-Forman reported strong first quarter fiscal 2022 results driven by the strength of its portfolio, benefiting from the re-opening of the on-premise, sustained at-home consumption, and continued premiumization trends.

Brown-Forman's first quarter fiscal 2022 net sales increased by 20% to $906 million, with underlying sales up 18%. Operating income decreased by 25% to $289 million, while diluted earnings per share declined by 41% to $0.40, impacted by the sale of brands in the prior year. The company is closely monitoring potential volatility associated with the evolving pandemic and supply chain disruptions.

  • Net sales grew 20% (+18% underlying) with strong growth across all geographic clusters and the Travel Retail channel.
  • Jack Daniel’s family of brands net sales grew 20% (+16% underlying).
  • Premium bourbons grew net sales 34% (+36% underlying).
  • The tequila portfolio grew net sales 32% (+23% underlying).

Headline financials

Total Revenue

$906M

Previous: $753M+20.3%
EPS (adj)

$0.40

Previous: $0.40+0.0%
Operating Margin

31.9%

Previous: 51.4%-37.9%
Quarterly Dividend

$0.18

Previous: $0.17+3.0%
Gross Margin

61.0%

Previous: 61.7%-1.1%
Effective Tax Rate

28.5%

Previous: 11.6%+145.7%
Capital Expenditures

-$14M

Previous: -$15M+6.7%
Free Cash Flow

$171M

Previous: $76M+125.0%
Net Income

$192M

Previous: $324M-40.7%
Operating Income

$289M

Previous: $387M-25.3%
Gross Profit

$553M

Previous: $465M+18.9%
Cash & Equivalents

$1.17B

Previous: $908M+29.1%
Total Assets

$6.58B

Previous: $6.19B+6.3%
Stock-Based Comp

$4M

Previous: $3M+33.3%

Revenue & EPS history

Brown-Forman · Revenue · Quarterly

$906M

Q1 2022+20.3%vs Q1 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Due to the volatility and uncertainty that continues to exist in the operating environment, including recent COVID-19 trends and global supply chain disruptions, we have revised some of our expectations for fiscal 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-3.2%

Avg return

30 days after

42%

29 / 69 earnings

Positive

+10.4%

Q1 2021

Best reaction

-9.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+2.8%+5.9%
Q3 2026-5.7%-10.8%-4.9%
Q2 2026+0.1%+0.1%-11.2%
Q1 2026-4.8%-3.9%-13.1%
Q4 2025+0.0%-0.8%+6.9%
Q3 2025+10.2%+14.6%-2.4%
Q2 2025+8.8%+10.7%-11.0%
Q1 2025+1.1%+1.0%+4.6%
Q4 2024-4.0%-6.4%-5.5%
Q3 2024-9.1%-8.1%-14.2%
Q2 2024-9.0%-6.1%-7.3%
Q1 2024-4.4%-3.0%-17.4%
Q4 2023+5.2%+2.3%+5.6%
Q3 2023-6.2%-5.9%-4.1%
Q2 2023-7.4%-6.4%-12.3%
Q1 2023-1.3%-2.1%-5.6%
Q4 2022+3.2%-0.1%+8.9%
Q3 2022+7.5%-2.0%+5.4%
Q2 2022-4.1%-2.1%-7.7%
Q1 2022+0.5%+1.0%-4.1%
Q4 2021-5.0%-4.4%-5.6%
Q3 2021-4.7%-3.2%-4.3%
Q2 2021+0.3%+4.1%-6.2%
Q1 2021+10.4%+10.8%+5.3%
Q4 2020-0.0%-3.5%-4.4%
Q3 2020-4.1%-11.3%-13.7%
Q2 2020-6.3%-6.8%-0.2%
Q1 2020-0.1%-0.8%+2.7%
Q4 2019+8.5%+10.4%+11.6%
Q3 2019-1.7%-1.3%+2.0%
Q2 2019-1.3%-2.1%-1.3%
Q1 2019+0.4%+0.3%-3.2%
Q4 2018-8.0%-6.7%-6.2%
Q3 2018-4.8%-3.5%-4.4%
Q2 2018+6.1%+4.9%+7.5%
Q1 2018+3.8%+3.8%+4.0%
Q4 2017-5.7%-6.1%-9.5%
Q3 2017-2.9%-3.7%-5.3%
Q2 2017+1.4%+1.1%-1.4%
Q1 2017-4.6%-4.6%-6.8%
Q4 2016+2.1%-0.2%+0.3%
Q3 2016-1.4%
Q2 2016+1.7%
Q1 2016+0.5%
Q4 2015-0.5%
Q3 2015-0.5%
Q2 2015+2.2%
Q1 2015-2.4%
Q4 2014+2.4%
Q3 2013+1.6%
Q3 2014+4.6%
Q2 2014+0.3%
Q1 2014-1.8%
Q4 2013-0.9%
Q2 2013-0.6%
Q1 2013+2.6%
Q2 2012-1.4%
Q4 2012+4.4%
Q3 2012-0.2%
Q1 2012-3.6%
Q4 2011-0.1%
Q4 2010-0.1%
Q2 2011-0.1%
Q4 2009-0.1%
Q3 2010-0.8%
Q3 2011-0.8%
Q1 2011+1.9%
Q1 2010+1.9%
Q2 2010+1.9%

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