Brown-Forman Corporation


SKU: BFb-1 Category:


Brown-Forman’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations. The company witnessed a 2% increase in reported net sales growth during the first half, with organic net sales rising by 1% after adjusting for recent acquisitions. This growth stands out against an 11% reported and 17% organic net sales surge last year. The average organic growth rate for the first halves of fiscal ’24 and ’23 was an impressive 9%. Jack Daniel’s Tennessee Apple, New Mix, and Glenglassaugh were key contributors to organic net sales growth, counterbalancing volume declines from the previous fiscal year’s inventory rebuild. Glenglassaugh, a brand with remarkable potential, emerged as the third-largest contributor to organic net sales growth. Recent cask sales, a relaunch, and increased supply signify its growing importance. The divestiture of Finlandia Vodka and Sonoma-Cutrer aligns with strategic ambitions, while the acquisition of Gin Mare and Diplomatico has contributed positively to reported net sales. Premium innovations, such as the Jack Daniel’s Bonded Rye and the Jack & Coke RTD, showcase a commitment to growth and value creation. They also announced that Sonoma-Cutrer Vineyards and associated brand trademarks would be acquired by The Duckhorn Portfolio, Inc., a distinguished wine business.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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