Brown Forman Corporation · Q3 2022 earnings

Briefing

Brown-Forman reported strong results driven by double-digit net sales growth and increased consumer demand, even amid supply chain constraints.

Brown-Forman Corporation reported a 14% increase in net sales to $1,037 million and a 19% increase in diluted earnings per share to $0.54 for the third quarter. The company's performance was driven by strong demand for its brands and effective management of supply chain challenges.

• Reported net sales increased by 14% (+22% on an organic basis) compared to the same prior-year period.
• Reported operating income increased 24% to $347 million (+43% on an organic basis).
• Diluted earnings per share increased 19% to $0.54.
• The Jack Daniel’s family of brands grew reported net sales 12% (+14% organic) powered by 17% reported net sales growth (+20% organic) from Jack Daniel’s Tennessee Whiskey.

Headline financials

Revenue & EPS history

Brown-Forman expects organic net sales growth of 11% to 13% for the full year. They project that costs associated with supply chain disruptions and inflationary cost headwinds will continue to have a negative impact on our gross margin, largely offset by a modest positive impact from the removal of tariffs in the EU. They expect organic operating expenses to increase in the 7% to 9% range and anticipate organic income growth of 12% to 16% for the full year. They continue to expect their fiscal 2022 effective tax rate to be in the range of approximately 22% to 23%.