Q1 2025 Brown-Forman Corp Earnings Call Transcript
Key Points
- Brown-Forman Corp (BF.A) reaffirmed its full-year growth outlook for fiscal 2025, indicating confidence in achieving its targets.
- Diplomatico Rum, Old Forester, and Woodford Reserve showed strong performance, contributing positively to organic net sales.
- The company is seeing positive results from its strategic geographic expansion efforts, particularly in Brazil.
- Brown-Forman Corp (BF.A) continues to benefit from its premiumization strategy, with brands like Woodford Reserve and Old Forester outperforming the American whiskey category.
- The Jack Daniel's and Coca-Cola RTD product is expanding into new markets and innovating with new flavors, showing promising growth potential.
- Reported net sales declined by 8%, with organic net sales decreasing by 4%, indicating a challenging start to the fiscal year.
- Jack Daniel's Tennessee Whiskey experienced a 6% decline in organic net sales, driven by lower volumes in key markets like the United States and the United Kingdom.
- Gross profit decreased by 13%, with a significant contraction in gross margin due to higher costs and lower production volumes.
- The company faced headwinds from transition service agreements and higher input costs, particularly affecting its tequila brands.
- Emerging international markets saw a 5% decline in organic net sales, driven by economic deceleration and consumer trade-down in markets like Mexico.
Good day, and thank you for standing by. Welcome to the Brown-Forman Corporation first quarter fiscal year 2025 earnings conference call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that today's conference is being recorded. I'll now hand the conference over to your first speaker today, Sue Perram, Vice President, Director of Relations. Please go ahead.
Thank you and good morning, everyone. I'd like to thank each of you for joining us today for Brown-Forman's first quarter fiscal year 2025 earnings call. Joining me today are Lawson Whiting, President and Chief Executive Officer, and Leanne Cunningham, Executive Vice President and Chief Financial Officer.
This morning's conference call contains forward-looking statements based on our current expectations. Numerous risks and uncertainties may cause actual results to differ materially from those anticipated or
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