Thu, Aug 29, 8:17 PM (138 days ago)
For the quarter ending July 31, 2024, Brown-Forman Corporation reported a decline in net sales of 8% to $951 million, primarily driven by lower volumes and the impacts of recent divestitures, including the Finlandia vodka and Sonoma-Cutrer wine businesses. Gross profit also decreased by 13% to $565 million, with gross margin falling to 59.4% from 62.7% due to high inventory levels and input cost fluctuations, exacerbated by transition service agreements (TSAs) from divestitures. Operating income dropped 14% to $281 million, influenced by these factors and foreign exchange impacts, while diluted earnings per share fell to $0.41, a 14% decrease year-over-year. Cash flow from operations was $17 million, a decline from $38 million the previous year, reflecting lower earnings despite reduced working capital needs. The company maintains a robust liquidity position with $416 million in cash and cash equivalents and a $900 million commercial paper program. Looking ahead, Brown-Forman anticipates organic net sales and operating income growth of 2% to 4% in fiscal 2025, driven by international market gains, although concerns about macroeconomic uncertainties persist.