NYSE$BF-A

Brown Forman Corporation · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Brown-Forman's financial performance was reported for Q1 2025, with net sales decreasing and reaffirming the full-year fiscal 2025 guidance.

Brown-Forman reported a decrease in net sales by 8% to $1.0 billion for the first quarter of fiscal 2025. Despite the decline, the company reaffirmed its full-year fiscal 2025 guidance, expecting organic top and bottom-line growth and continued gross margin expansion.

  • Net sales decreased across all geographic aggregations due to shipment timing and pricing strategy execution.
  • Diplomático Rum, Old Forester, and Woodford Reserve growth was offset by declines in Jack Daniel’s Tennessee Whiskey and the Finlandia divestiture.
  • Gross profit declined by 13%, with a gross margin reduction of 330 basis points due to input cost fluctuations and high inventory levels.
  • Operating expenses decreased by 12%.

Headline financials

Total Revenue

$951M

Previous: $1.04B-8.4%
EPS

$0.41

Previous: $0.48-14.6%
Operating Margin

29.6%

Previous: 31.5%-6.0%
Quarterly Dividend

$0.22

Previous: $0.21+6.0%
Gross Margin

59.4%

Previous: 62.7%-5.3%
Effective Tax Rate

23.1%

Previous: 22.9%+0.9%
Capital Expenditures

-$41M

Previous: -$49M+16.3%
Free Cash Flow

-$24M

Previous: -$11M-118.2%
Net Income

$195M

Previous: $231M-15.6%
Operating Income

$281M

Previous: $327M-14.1%
Gross Profit

$565M

Previous: $651M-13.2%
Cash & Equivalents

$416M

Previous: $426M-2.3%
Total Assets

$8.21B

Previous: $8.09B+1.5%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Brown-Forman · Revenue · Quarterly

$951M

Q1 2025-8.4%vs Q1 2024
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Brown-Forman anticipates a return to growth for organic net sales and organic operating income in fiscal 2025, driven by gains in international markets and normalizing inventory trends. This outlook is tempered by the belief that global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment.

Tailwinds

  • Organic net sales growth in the 2% to 4% range.
  • Organic operating income growth in the 2% to 4% range.

Headwinds

  • Global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment.

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 2025

Historical avgQ1 2025

-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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