NYSE$BF-A

Brown Forman Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Brown-Forman reported resilient year-to-date performance amidst a challenging environment.

Brown-Forman's Q3 2021 showed a 1% increase in reported net sales to $911 million, but remained flat on an underlying basis. Operating income decreased by 8% to $281 million, and diluted earnings per share declined by 5% to $0.45. The company remains focused on executing long-term strategic priorities and delivering broad-based growth.

  • Underlying net sales grew 2% year-to-date, driven by the United States and developed international markets, which each grew 7%.
  • Jack Daniel’s family of brands underlying net sales grew 2%, supported by Jack Daniel’s RTDs, Tennessee Apple, Tennessee Honey, and Gentleman Jack.
  • Premium bourbons grew underlying net sales 21%, with Woodford Reserve and Old Forester showing strong double-digit growth.
  • The tequila portfolio grew underlying net sales 6%, led by New Mix in Mexico.

Headline financials

Total Revenue

$911M

Previous: $899M+1.3%
EPS (adj)

$0.45

Previous: $0.48-6.2%
Operating Margin

30.9%

Previous: 33.8%-8.6%
Quarterly Dividend

$0.18

Previous: $0.17+3.0%
Gross Margin

60.4%

Previous: 61.9%-2.4%
Effective Tax Rate

15.7%

Previous: 18.6%-15.6%
Capital Expenditures

-$41M

Previous: -$84M+51.2%
Free Cash Flow

$531M

Previous: $425M+24.9%
Net Income

$219M

Previous: $231M-5.2%
Operating Income

$281M

Previous: $304M-7.6%
Gross Profit

$550M

Previous: $557M-1.3%
Cash & Equivalents

$1.11B

Previous: $276M+300.7%
Total Assets

$6.5B

Previous: $5.52B+17.7%
Stock-Based Comp

$3M

Previous: $2M+50.0%

Revenue & EPS history

Brown-Forman · Revenue · Quarterly

$911M

Q3 2021+1.3%vs Q3 2020
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Forward guidance

The company expects to continue to face uncertainty related to the evolving COVID-19 pandemic and its effect on the global economy. As a result, no quantitative guidance is being provided for fiscal year 2021.

Tailwinds

  • The company's financial and business fundamentals have remained strong throughout the entire pandemic.
  • The company delivered solid growth in a challenging environment.
  • The company believes it is operating from a position of strength.
  • The company expects to emerge even stronger from this crisis.
  • The company aims to continue to grow market share and drive long-term sustainable growth for all stakeholders.

Headwinds

  • The company expects to continue to face uncertainty related to the evolving COVID-19 pandemic.
  • The COVID-19 pandemic will affect the global economy.
  • The company is not providing quantitative guidance for fiscal year 2021.
  • COVID-19 related restrictions severely limited and in some cases entirely shut down the on-premise channel.
  • Underlying net sales in Travel Retail continued to be significantly impacted by the continuation of COVID-19 related travel bans and restrictions.

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 Q3 2021

Historical avgQ3 2021

-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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