Workflow
Brown-Forman(BF_A) - 2024 Q4 - Annual Results
BF_ABrown-Forman(BF_A)2024-06-05 12:05

Financial Performance - For fiscal 2024, the company reported net sales of 4.2billion,adecreaseof14.2 billion, a decrease of 1% (-1% organic) compared to the prior year[17]. - Operating income for the full year increased by 25% to 1.4 billion (-2% organic), while diluted earnings per share rose by 32% to 2.14[17].−Inthefourthquarter,reportednetsalesdecreased82.14[17]. - In the fourth quarter, reported net sales decreased 8% to 1.0 billion (-5% organic), with operating income increasing 26% to 375million(−16375 million (-16% organic) and diluted earnings per share increasing 31% to 0.56[18]. - Reported net sales change was (1%) for the 12 months ended April 30, 2024, with organic change at (1%)[63]. - Operating income reported a change of 26% for the 3 months ended April 30, 2024, and 25% for the 12 months[63]. - Net sales for 2023 were 1,046million,adecreaseof81,046 million, a decrease of 8% compared to 964 million in 2024[82]. - Gross profit for 2023 was 635million,down10635 million, down 10% from 569 million in 2024[82]. - Operating income increased by 26% to 298millionin2023,comparedto298 million in 2023, compared to 375 million in 2024[82]. - Net income for 2023 was 207million,reflectinga29207 million, reflecting a 29% increase from 266 million in 2024[82]. - Earnings per share (EPS) for 2023 were 0.43,a310.43, a 31% increase compared to 0.56 in 2024[82]. Shareholder Returns - The company returned 804milliontostockholders,including804 million to stockholders, including 404 million in dividends and 400millionthroughsharerepurchases[21].−Cashdividendspaidpercommonshareincreasedfrom400 million through share repurchases[21]. - Cash dividends paid per common share increased from 0.2055 in 2023 to 0.2178in2024[82].SalesandProductPerformance−ReportednetsalesfortheTequilaportfoliodecreased40.2178 in 2024[82]. Sales and Product Performance - Reported net sales for the Tequila portfolio decreased 4% (-7% organic), with Herradura's sales declining 10% (-13% organic)[44]. - The Ready-to-Drink portfolio delivered reported net sales growth of 2% (flat on an organic basis), with New Mix's sales increasing 32% (+17% organic)[44]. - Whiskey depletions totaled 21.7 million cases, with a reported decline of 3% compared to the prior year[88]. - Jack Daniel's family of brands reported net sales of 30.0 million, reflecting an 11% decrease year-over-year[88]. - The Ready-to-Drink category saw depletions of 21.0 million cases, down 3% from the previous year[88]. - Tequila depletions were 2.3 million cases, representing an 11% decline compared to the prior year[88]. - Organic sales growth for the New Mix brand was 4%, with net sales increasing by 32%[88]. - The company reported a 61% increase in net sales for non-branded and bulk products[88]. Inventory and Operating Activities - Cash provided by operating activities was 640million,adecreasefrom640 million, a decrease from 647 million[60]. - The company experienced a (4%) change in net sales in the United States, with organic change also at (4%) for the same period[66]. - The company reported a (6%) estimated net change in distributor inventories for the emerging market segment[68]. - The company noted a (12%) change in estimated net change in distributor inventories for the emerging market segment[68]. - Estimated net change in distributor inventories indicates a potential increase in organic trends as distributors rebuild inventories[110]. Acquisitions and Divestitures - The acquisition of Gin Mare Brand, S.L.U. was completed during the third quarter of fiscal 2023, impacting financial results[71]. - A pre-tax gain of 92millionwasrealizedfromthesaleoftheFinlandiavodkabusinessduringthethirdquarteroffiscal2024[72].−ThedivestituresofFinlandiaandSonoma−Cutrerresultedinagainof92 million was realized from the sale of the Finlandia vodka business during the third quarter of fiscal 2024[72]. - The divestitures of Finlandia and Sonoma-Cutrer resulted in a gain of 267 million[43]. - The divestiture of the Sonoma-Cutrer wine business resulted in a pre-tax gain of 175million[95].−Thecompanyacquiredseveralbrands,includingDiplomaˊtico,duringthethirdquarteroffiscal2023,impactingfutureperformance[94].FutureOutlook−Thecompanyanticipatesorganicnetsalesgrowthintherangeof2175 million[95]. - The company acquired several brands, including Diplomático, during the third quarter of fiscal 2023, impacting future performance[94]. Future Outlook - The company anticipates organic net sales growth in the range of 2% to 4% for fiscal 2025[29]. - Capital expenditures are planned to be between 195 million and 205millionforfiscal2025[53].AssetsandLiabilities−Totalassetsincreasedfrom205 million for fiscal 2025[53]. Assets and Liabilities - Total assets increased from 7,777 million in April 2023 to 8,166millioninApril2024[84].−Cashandcashequivalentsrosefrom8,166 million in April 2024[84]. - Cash and cash equivalents rose from 374 million in April 2023 to 446millioninApril2024[84].−Totalliabilitiesincreasedfrom446 million in April 2024[84]. - Total liabilities increased from 4,509 million in April 2023 to 4,649millioninApril2024[84].−Thecompanyreportedanetincreaseincashprovidedbyfinancingactivitiesof4,649 million in April 2024[84]. - The company reported a net increase in cash provided by financing activities of 239 million in 2023, with a decrease of 618millionin2024[86].OperatingExpenses−Reportedgrossprofitincreasedby1618 million in 2024[86]. Operating Expenses - Reported gross profit increased by 1% (+2% organic) with gross margin expansion of 150 basis points to 60.5%[48]. - Organic change in gross profit was reported at (8%) for the 12 months ended April 30, 2024[63]. - Advertising expenses saw a reported change of (14%) for the 3 months ended April 30, 2024[63]. - Operating expenses included a commitment of 23 million to the Brown-Forman Foundation, affecting organic operating income[112].