Brown-Forman Corporation Revenue & Financials

Brown-Forman reported net sales of $4.18 billion for fiscal 2024 ended April 30, 2024, a 1% decline from the $4.23 billion reported in fiscal 2023. The modest decline reflected inventory normalization in the U.S. and developed international markets, partially offset by growth in emerging markets and travel retail. Gross profit was $2.53 billion, yielding a gross margin of 60.4%, up from 59.0% in fiscal 2023, driven by favorable price/mix, higher-priced brand growth, and the divestiture of lower-margin wine and vodka brands. Advertising expenses increased 4% to $529 million (12.7% of net sales), while selling, general, and administrative expenses rose 11% to $826 million (19.8% of net sales), reflecting investments in international expansion and brand marketing. Operating income surged 25% to $1.41 billion, but this included a $267 million gain from the divestitures of Finlandia vodka and Sonoma-Cutrer wine. Excluding this gain, adjusted operating income declined approximately 2% on an organic basis, reflecting the top-line pressure and expense growth. Net income for fiscal 2024 was $1.02 billion, up from $783 million in fiscal 2023, with diluted earnings per share rising from $1.63 to $2.14. The effective tax rate was approximately 21%, at the low end of the guided range. The balance sheet remained solid. Total assets were $8.17 billion as of April 30, 2024, with total stockholders' equity of $3.52 billion. Long-term debt stood at $2.37 billion, with a current portion of $300 million. The company maintained investment-grade credit ratings and access to capital markets. Cash provided by operating activities was strong, though specific fiscal 2024 operating cash flow was not separately disclosed in the available filings. Capital expenditures were guided at $195 million to $205 million for fiscal 2025, supporting distillery capacity expansions, cooperage operations, and supply chain infrastructure. The company returned $804 million to stockholders in fiscal 2024: $404 million in regular quarterly dividends and $400 million through share repurchases. The dividend yield as of mid-2025 was approximately 3.5%, with the company having maintained a decades-long record of annual dividend increases. The first quarter of fiscal 2026, ended July 31, 2025, showed mixed results. Net sales declined 5% to $1.04 billion, with organic net sales down 2%. Whiskey net sales were flat, tequila declined 1% (+1% organic), and RTD increased 6% (+9% organic). The U.S. market remained challenging, with net sales down 9% on a reported basis, while emerging markets grew 3% (+8% organic). The company reaffirmed its full-year fiscal 2026 outlook, suggesting management believes the first-quarter weakness is transitional rather than structural.