I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2027 Q1, the actual value is USD 911 M, missing the estimate of USD 915 M.
EPS: As of FY2027 Q1, the actual value is USD 0.38, beating the estimate of USD 0.367.
EBIT: As of FY2027 Q1, the actual value is USD 274 M.
Financial Highlights
Brown-Forman Corporation reported net sales of $911 million, representing a 1% decrease, which was also -1% on an organic basis compared to the prior-year period . Operating income decreased 3% to $252 million, though it increased 4% on an organic basis . Net income increased 3% to $176 million . The gross margin expanded by 40 basis points to 60.2% . The operating margin decreased by 50 basis points to 27.7% . Advertising expenses decreased 5% (-4% organic) to $114 million, and Selling, General, and Administrative (SG&A) expenses increased 4% (+5% organic) to $185 million . The effective tax rate for the quarter was 23.0% . Non-operating postretirement expense was $1 million, and interest expense, net, was $22 million . Income before income taxes was $229 million, an increase of 4% . The company declared a regular quarterly cash dividend of $0.2310 per share .
Cash Flow
Cash flows from operations increased by $13 million to $173 million . Free cash flow increased by $32 million to $161 million . Brown-Forman Corporation repaid $343 million (€300 million) principal amount of its 1.20% senior notes on July 7, 2026 .
Segment Revenue Performance (Organic Net Sales Change)
- Whiskey products: Net sales were flat . This included a -10% decline for Jack Daniel’s Tennessee Honey and a -14% decline for Gentleman Jack, while Jack Daniel’s Tennessee Whiskey remained flat . The Rest of Whiskey category saw a 33% increase .
- Ready-to-Drink portfolio: Net sales increased 11%, primarily driven by New Mix, which grew 36% .
- Tequila portfolio: Net sales decreased 13%, with Herradura declining 18% and el Jimador decreasing 11% .
- Rest of Portfolio: Net sales declined 12% .
- Non-branded and bulk: Net sales decreased 61% .
Geographic Market Performance (Organic Net Sales Change)
- United States: Net sales were flat .
- Developed International markets: Net sales declined 8%, with Germany down 11%, France down 15%, and Spain down 16% . Australia, however, saw a 4% increase .
- Emerging markets: Net sales increased 9%, fueled by a 15% growth in Mexico . Poland and Brazil experienced declines of 5% and 15% respectively, while Türkiye grew 9% .
- Travel Retail: Net sales declined 1% .
Fiscal 2027 Outlook
Brown-Forman Corporation anticipates a challenging operating environment for fiscal 2027 due to macroeconomic pressures and geopolitical instability . The company expects organic net sales to be approximately flat and organic operating income to decline in the 3% to 5% range . The effective tax rate is projected to be between 20% and 22%, with capital expenditures planned in the range of $60 million to $70 million .