Brown-Forman Corporation

  • Brown–Forman   Corporation, the U.S.-based alcohol beverage producer, reported robust   results for the 2022 fiscal year. Net sales for the fiscal year grew 14% (17%   organic) to $3.9 billion, with operating profit increasing by 3% to $1.2bn.   The gross margin expanded 30bps to 60.8%, driven primarily by a favourable   price/mix which offset higher costs. Brown-Forman however reported a 310bps   decrease in operating margins to 30.6%.

  • Earnings per share decreased 7% to $1.74 primarily due to higher   income taxes, partially offset by the increase in reported operating income.   Free cash flow improved to $798 million from $755 million in the   corresponding 12 months in 2020.

  • · Brown-Forman, a member of the prestigious S&P 500 Dividend   Aristocrats index, has paid regular quarterly cash dividends for 78   consecutive years and has increased the regular dividend for 38 consecutive   years. In 2022, the dividend increased to $1.74 from $0.71, which included a   special dividend of $1 per share.

  • On a regional basis, the group’s largest market, the U.S., delivered   strong net sales growth of 10%. This was largely due to robust Jack Daniel’s   sales. International markets grew by 12%, whilst Emerging Markets expanded   sales by 24%. The Travel Retail channel rebounded, with reported net sales   growth of 65% on the back of a recovery in international travel.

  • Looking ahead, Brown-Forman anticipates continued growth in fiscal 2023 despite global macroeconomic and geopolitical uncertainties. At this stage management is projecting organic net sales growth in the mid-single digit range. Current earnings per share consensus for 2023 is $1.97.

Brown-Forman Corporation