Brown Forman Corporation (BF.A) Earnings & Analysis

Latest quarter

Brown-Forman reported Q1 FY2027 revenue of $911.0 million, down from $924.0 million a year earlier. The quarter’s consensus was unavailable, so a comparison with expectations for revenue and adjusted earnings cannot be made.

The company’s filing attributed the sales decline to unfavorable price and product mix and the end of the Korbel relationship, partly offset by higher volumes, currency effects and the Jack Daniel’s Coca-Cola transition. New Mix sales rose 48.0%, while the filing reported declines for el Jimador and Herradura. Sales fell in the United States and developed international markets but grew in emerging markets.

Brown-Forman reported diluted earnings per share of $0.38, up from $0.36. Its filing attributed the increase partly to lower non-operating postretirement expense and prior-year share repurchases. Gross margin increased, though higher operating expenses contributed to a decline in operating margin to 27.7%.

The filing reported $173.0 million in cash from operations, reflecting higher earnings and lower working capital requirements. Free cash flow was $161.0 million.

What management said on the call

Brown-Forman’s latest earnings call commentary is unavailable, as are management’s responses to analyst questions on the quarter.

Guidance

Brown-Forman reaffirmed its FY2027 outlook for organic net sales and organic operating income after the first quarter, keeping the forecast it had previously issued for both measures.