Brown-Forman Corporation
Distilled Spirits and WinesFounded 1870- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Brown-Forman Corporation
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$4.18B
Market Cap
$12.0B
Net Income
$1.0B
Employees
5,200
Brown-Forman generated $4.18 billion in net sales for fiscal 2024 and $1.02 billion in net income. The reported 25% increase in operating income to $1.41 billion in fiscal 2024 requires context: a $267 million gain from divesting Finlandia vodka and Sonoma-Cutrer wine drove most of that improvement. Strip out the divestiture gain, and organic operating income actually declined 2%, revealing genuine pressure from retailer destocking, macroeconomic headwinds in key export markets, and the tariff disruptions that affected premium American spirits in Europe and Canada. Net sales of $4.18 billion in fiscal 2024 represented a slight decline from the $4.23 billion reported in fiscal 2023, reflecting retailer destocking and macroeconomic pressure in key markets including the United States and Europe. Net income of $1.02 billion on $4.18 billion in revenue represents a 24.4% net margin, among the highest in consumer goods. The divestiture of Finlandia vodka and Sonoma-Cutrer wine in fiscal 2024 generated $267 million in gains and simplified the portfolio around the highest-margin, highest-growth assets. Revenue trajectory: $4.23 billion in 2023, $4.18 billion in 2024, with fiscal 2025 trending toward $4.3 billion as destocking cycles normalize.
Revenue Trend Analysis
YoY Change
+2.9%
2-Year CAGR
+0.8%
Peak Year
2025
Trend
Mostly Growing
Brown-Forman Corporation has reported revenue across 3 fiscal years, compounding at +0.8% annually over 2 years. The most recent year saw a 2.9% increase versus the prior year. Revenue peaked in 2025 at $4.3B. Out of 2 reported periods, 1 showed growth and 1 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $4.3B | — | +2.9% |
| FY2024 | $4.2B | $1.0B | -1.2% |
| FY2023 | $4.2B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Brown-Forman's $1 billion net income on $4.18 billion revenue represents 24% net margin — exceptional for consumer goods industry — reflecting premium spirits pricing, family-owned company's focus on quality over volume, and operational scale at premium distilleries. Operating margins exceed 30% with gross margins above 60%, demonstrating Jack Daniel's brand pricing power and Brown-Forman's premium positioning across portfolio. The profitability has compressed modestly from peak levels (32% operating margins in 2021-2022) due to inflation pressure on glass, agave, and energy costs, plus marketing investment increases supporting brand-building during competitive periods. Family ownership structure enables longer-term investment perspective that may sacrifice quarterly margins for strategic positioning, generating sustainable premium-margin business model.
Brown-Forman's family ownership has supported one of corporate America's most consistent dividend growth records — 41 consecutive years of dividend increases (Dividend Aristocrat) and 80+ years of consecutive dividend payments — reflecting family preference for steady income from spirits investment over volatile growth-oriented strategies. Capital allocation emphasises modest dividend growth (currently $0.93 annually, 1.6% yield), brand-building marketing investment, selective acquisitions, and minimal share buybacks except during opportunistic windows when stock trades at discount. Total return profile (dividend + capital appreciation) has compounded at approximately 10% annually over multiple decades, providing family wealth preservation while building business value. The family ownership prevents aggressive capital actions including major debt-funded buybacks or speculative acquisitions that could threaten dividend sustainability.
Brown-Forman's tequila business (primarily Herradura) depends on blue agave plants requiring 6-8 years to mature, creating supply-demand cycles where agave prices fluctuate dramatically — from approximately $4 per kilogram during oversupply to $30+ during shortages, with significant impact on tequila production economics. The 2020-2023 agave shortage drove agave costs to record levels, compressing tequila margins despite raising retail prices, while subsequent oversupply expected through 2025-2027 should restore margins through cost normalisation. Brown-Forman owns substantial agave plantations providing internal supply, reducing market price exposure compared to competitors purchasing agave from third-party growers. The agave cycle creates predictable margin variability for tequila producers that financial analysis must incorporate, with Brown-Forman's vertical integration providing competitive advantage through cycles.
Brown-Forman's 41-year dividend growth record and 80+ year consecutive payment history reflects extraordinary financial discipline and family commitment that has weathered Prohibition, World Wars, recessions, and competitive pressures — providing dividend sustainability among the most reliable in corporate America. Current dividend coverage of 2.5x earnings provides significant cushion for cyclical pressures, and the family ownership's preference for dividend income over volatile growth strategies supports continued growth even during pressured periods. Recent industry challenges including declining US spirits volumes (younger consumers drinking less alcohol than predecessors), tariff exposures on European exports, and pricing pressure from craft distillery competition create headwinds but appear manageable within current capital allocation framework. Dividend sustainability rates among highest in consumer goods sector.
Using these figures? Please credit CorpDigest with a link.
CorpDigest. "Brown-Forman Corporation Revenue & Financials." CorpDigest, https://corpdigest.com/company/brown-forman/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Brown-Forman Corporation reported $4B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/brown-forman/financials" target="_blank" rel="noopener">CorpDigest — Brown-Forman Corporation financials</a></div>