Wed, Mar 5, 9:30 PM (11 days ago)
Brown-Forman Corporation (BFB) reported a decline in financial performance for the third quarter ended January 31, 2025. Net sales decreased by 3% to $1,035 million, primarily due to divestitures and foreign exchange impacts, although organic sales rose 6%. Gross profit fell 3% to $619 million, with a gross margin of 59.8%, slightly up from the previous year. Operating income dropped 25% to $280 million, influenced by restructuring costs and the absence of previous gains from divestitures. Diluted earnings per share decreased 5% to $0.57, reflecting lower operating income but supported by a gain from the sale of an investment in Duckhorn. Cash flow from operations improved to $446 million, attributed to reduced working capital needs. The company anticipates organic net sales growth of 2% to 4% for fiscal 2025, with a planned capital expenditure of $180 to $190 million. The effective tax rate is expected to range between 20% and 22%. Overall, Brown-Forman faces challenges from market volatility and geopolitical uncertainties but maintains a strong liquidity position with cash and equivalents of $599 million.