Brown-Forman Announces Fiscal Year 2024 Financial Results
Brown-Forman has released its financial results for the fourth quarter and fiscal year ending April 30, 2024. In the fourth quarter, net sales declined by 8%1 to $1.0 billion (-5% organically2) compared to the same period last year. Despite this, reported operating income increased by 26% to $375 million (-16% organically), and diluted earnings per share rose by 31% to $0.56. For the full fiscal year, reported net sales decreased by 1% to $4.2 billion (-1% organically), while operating income increased by 25% to $1.4 billion (-2% organically), and diluted earnings per share increased by 32% to $2.14.
Lawson Whiting, President, and Chief Executive Officer of Brown-Forman, commented, “Despite challenges in the spirits industry during fiscal 2024, Brown-Forman remained adaptable and focused on the long-term growth of our brands and business. Although our organic results for fiscal 2024 were impacted by inventory reductions across the spirits value chain, adjusting for these changes, we are pleased with the results achieved and remain confident in our strategy, brands, and business. Looking ahead to fiscal 2025, we aim to continue building on this foundation and deliver organic growth in both top and bottom lines, along with further gross margin expansion.”
Highlights for Fiscal Year 2024:
- Reported net sales declines in the United States and Developed International3 markets were balanced by growth in Emerging3 markets and the Travel Retail3 channel.
- Brand Performance:
- Jack Daniel’s Tennessee Whiskey reported net sales declined 6% (-5% organic).
- Diplomático and Gin Mare drove Rest of Portfolio’s3 reported net sales growth of 61% (+15% organic).
- New Mix reported net sales growth of 32% (+17% organic).
- Reported gross profit increased 1% (+2% organic) with a 150 basis points gross margin expansion.
- The company increased reported advertising expense by 4% (+2% organic).
- The combined divestitures of Finlandia and Sonoma-Cutrer resulted in a gain of $267 million.
- The company returned $804 million to stockholders through dividends and share repurchase program.
Brand Results for Fiscal Year 2024:
- Reported net sales for Whiskey3 products declined 3% (-2% organic).
- Reported net sales for the Tequila3 portfolio decreased 4% (-7% organic).
- Ready-to-Drink3 (RTD) portfolio delivered reported net sales growth of 2% (flat organically).
- Diplomático and Gin Mare led the Rest of Portfolio’s reported net sales growth of 61% (+15% organic).
Market Results for Fiscal Year 2024:
- Reported net sales in the United States decreased 4% (-4% organic).
- Developed International markets’ reported net sales decreased 2% (-5% organic).
- Travel Retail channel reported net sales increased 8% (+6% organic).
- Emerging markets grew reported net sales 5% (+8% organic).
Other Fiscal Year 2024 Highlights:
- Reported gross profit increased 1% (+2% organic) with a gross margin expansion of 150 basis points.
- Reported advertising expense grew 4% (+2% organic).
- Reported operating income increased 25% (-2% organic).
- Diluted earnings per share increased $0.52.
Financial Stewardship for Fiscal Year 2024:
During fiscal 2024, the company paid $404 million to stockholders through regular quarterly dividends and returned $400 million through its share repurchase program, completed in December 2023. Brown-Forman has a long-standing record of dividend payments, being a member of the S&P 500 Dividend Aristocrats index for 80 consecutive years, with 40 consecutive years of regular dividend increases.
