Brown-Forman Reports Fiscal 2025 Results
BF.B
Published on 06/05/2025 at 08:11
Brown-Forman Corporation (NYSE: BFA, BFB) reported financial results for its fourth quarter and fiscal year ended April 30, 2025. Fourth quarter reported net sales decreased 7%1 to $894 million (-3% on an organic basis2) compared to the same prior-year period. In the quarter, reported operating income decreased 45% to $205 million (-2% on an organic basis) and diluted earnings per share decreased 45% to $0.31, largely due to the absence of the prior-year gain on sale of the Sonoma-Cutrer wine business.
For the full year, the company’s reported net sales decreased 5% to $4.0 billion (+1% on an organic basis) compared to the same prior-year period. Reported operating income decreased 22% to $1.1 billion (+3% on an organic basis) and diluted earnings per share decreased 14% to $1.84.
“Our ability to deliver organic growth on both the top and bottom line in a year of softening consumer demand is a testament to the strength and resilience of our team,” said Lawson Whiting, Brown-Forman’s President and Chief Executive Officer. “While our results did not meet our long-term growth aspirations, we made important progress in an exceptionally challenging macroeconomic environment. Looking ahead to fiscal 2026, we expect continued headwinds. Still, we are confident that with agility, innovation, and a clear focus on execution, we are well positioned to navigate uncertainty and unlock new opportunities for sustainable long-term growth.”
Fiscal 2025 Highlights
Fiscal 2025 Brand Results
Fiscal 2025 Market Results
Fiscal 2025 Other P&L Items
Fiscal 2025 Financial Stewardship
Fiscal 2026 Outlook
We anticipate the operating environment for fiscal 2026 will be challenging, with low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs, and lower non-branded sales of used barrels. We remain focused on building our business for the long term and navigating the current environment at pace with strategic initiatives in fiscal 2026 that we believe will unlock future growth led by the significant evolution of our U.S. distribution, the restructuring initiative, and meaningful new product innovation. Considering these factors, we expect the following in fiscal 2026:
Conference Call Details
Brown-Forman will host a conference call to discuss these results at 10:00 a.m. (ET) today. A live audio broadcast of the conference call, and the accompanying presentation slides, will be available via Brown-Forman’s website, brown-forman.com, through a link to “Investors/Events & Presentations.” A digital audio recording of the conference call and the presentation slides will also be posted on the website and will be available for at least 30 days following the conference call.
Brown-Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries. Discover more about us at brown-forman.com and stay connected through LinkedIn, Instagram, and X.
Important Information on Forward-Looking Statements:
This press release contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:
For further information on these and other risks, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
Unaudited Consolidated Statements of Operations
For the Three Months Ended April 30, 2024 and 2025
(Dollars in millions, except per share amounts)
2024
2025
Change
Net sales
$
964
$
894
(7%)
Cost of sales
395
381
(4%)
Gross profit
569
513
(10%)
Advertising expenses
115
107
(7%)
Selling, general, and administrative expenses
231
193
(16%)
Restructuring and other charges
—
27
Gain on sale of business
(177
)
—
Other expense (income), net
25
(19
)
Operating income
375
205
(45)%
Non-operating postretirement expense
1
—
Interest expense, net
27
22
Income before income taxes
347
183
(47)%
Income taxes
81
37
Net income
$
266
$
146
(45)%
Earnings per share:
Basic
$
0.56
$
0.31
(45)%
Diluted
$
0.56
$
0.31
(45)%
Gross margin
59.0
%
57.3
%
Operating margin
38.9
%
22.9
%
Effective tax rate
23.5
%
20.2
%
Cash dividends paid per common share
$
0.2178
$
0.2265
Shares (in thousands) used in the calculation of earnings per share
Basic
472,548
472,667
Diluted
473,146
472,884
Brown-Forman Corporation
Unaudited Consolidated Statements of Operations
For the Twelve Months Ended April 30, 2024 and 2025
(Dollars in millions, except per share amounts)
2024
2025
Change
Net sales
$
4,178
$
3,975
(5%)
Cost of sales
1,652
1,632
(1%)
Gross profit
2,526
2,343
(7%)
Advertising expenses
529
484
(8%)
Selling, general, and administrative expenses
826
744
(10%)
Restructuring and other charges
—
60
Gain on sale of business
(267
)
—
Other expense (income), net
24
(52
)
Operating income
1,414
1,107
(22)%
Non-operating postretirement expense
3
4
Interest expense, net
113
105
Equity method investment income and gain on sale
—
(83
)
Income before income taxes
1,298
1,081
(17)%
Income taxes
274
212
Net income
$
1,024
$
869
(15)%
Earnings per share:
Basic
$
2.15
$
1.84
(14)%
Diluted
$
2.14
$
1.84
(14)%
Gross margin
60.5
%
58.9
%
Operating margin
33.8
%
27.9
%
Effective tax rate
21.2
%
19.6
%
Cash dividends paid per common share
$
0.8466
$
0.8886
Shares (in thousands) used in the calculation of earnings per share
Basic
476,394
472,655
Diluted
477,220
472,950
Brown-Forman Corporation
Unaudited Condensed Consolidated Balance Sheets
(Dollars in millions)
April 30, 2024
April 30, 2025
Assets:
Cash and cash equivalents
$
446
$
444
Accounts receivable, net
769
830
Inventories
2,556
2,511
Assets held for sale
—
121
Other current assets
265
289
Total current assets
4,036
4,195
Property, plant, and equipment, net
1,074
1,095
Goodwill
1,455
1,505
Other intangible assets
990
981
Equity method investments
270
3
Other assets
341
307
Total assets
$
8,166
$
8,086
Liabilities:
Accounts payable and accrued expenses
$
793
$
741
Accrued income taxes
38
27
Short-term borrowings
428
312
Current portion of long-term debt
300
—
Total current liabilities
1,559
1,080
Long-term debt
2,372
2,421
Deferred income taxes
315
241
Accrued postretirement benefits
160
164
Other liabilities
243
187
Total liabilities
4,649
4,093
Stockholders’ equity
3,517
3,993
Total liabilities and stockholders’ equity
$
8,166
$
8,086
Brown-Forman Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
For the Twelve Months Ended April 30, 2024 and 2025
(Dollars in millions)
2024
2025
Cash provided by operating activities
$
647
$
598
Cash flows from investing activities:
Proceeds from sale of business
246
—
Proceeds from sale of equity method investment
—
350
Additions to property, plant, and equipment
(228
)
(167
)
Other
31
66
Cash provided by (used for) investing activities
49
249
Cash flows from financing activities:
Net change in short-term borrowings
192
(117
)
Repayment of long-term debt
—
(300
)
Acquisition of treasury stock
(400
)
—
Dividends paid
(404
)
(420
)
Other
(6
)
(6
)
Cash provided by (used for) financing activities
(618
)
(843
)
Effect of exchange rate changes
(6
)
3
Net increase (decrease) in cash, cash equivalents, and restricted cash
72
7
Cash, cash equivalents, and restricted cash at beginning of period
384
456
Cash, cash equivalents, and restricted cash at end of period
456
463
Less: Restricted cash at end of period
(10
)
(19
)
Cash and cash equivalents at end of period
$
446
$
444
Schedule A
Brown-Forman Corporation
Supplemental Statement of Operations Information (Unaudited)
Percentage change versus the prior-year period ended
April 30, 2025
3 Months
12 Months
Reported change in net sales
(7
%)
(5
%)
Acquisitions and divestitures
3
%
3
%
Other items*
—
%
1
%
Foreign exchange
1
%
2
%
Organic change in net sales
(3
%)
1
%
Reported change in gross profit
(10
%)
(7
%)
Acquisitions and divestitures
2
%
3
%
Other items
1
%
—
%
Foreign exchange
2
%
3
%
Organic change in gross profit
(5
%)
(2
%)
Reported change in advertising expenses
(7
%)
(8
%)
Acquisitions and divestitures
1
%
2
%
Foreign exchange
—
%
1
%
Organic change in advertising expenses
(6
%)
(6
%)
Reported change in SG&A
(16
%)
(10
%)
Acquisitions and divestitures
1
%
1
%
Other Items
9
%
3
%
Foreign exchange
—
%
1
%
Organic change in SG&A
(6
%)
(5
%)
Reported change in operating income
(45
%)
(22
%)
Acquisitions and divestitures
24
%
16
%
Impairment charges
21
%
4
%
Other items
3
%
2
%
Foreign exchange
(4
%)
3
%
Organic change in operating income
(2
%)
3
%
*See “Note 2 - Non-GAAP Financial Measures” for details on our use of Non-GAAP financial measures, how these measures are calculated, and the reasons why we believe this information is useful to readers.
Note: Totals may differ due to rounding.
Schedule B
Brown-Forman Corporation
Supplemental Statement of Operations Information (Unaudited)
Twelve Months Ended April 30, 2025
Supplemental Information^
Volumes (9-Liter Cases)
Net Sales % Change vs. Prior-Year Period
Product Category / Brand Family / Brand^
Depletions
(Millions)*
% Change vs. Prior-Year Period
Shipments
(Millions)*
% Change vs. Prior-Year Period
Reported
Acquisitions and Divestitures
Other Items
Foreign Exchange
Organic^
Whiskey
21.0
(3
%)
20.9
1
%
—
%
—
%
—
%
1
%
1
%
JDTW
13.9
(4
%)
13.8
1
%
—
%
—
%
—
%
1
%
1
%
JDTH
2.0
(2
%)
2.0
2
%
—
%
—
%
—
%
2
%
2
%
Gentleman Jack
0.8
(1
%)
0.8
5
%
4
%
—
%
—
%
1
%
5
%
JDTA
0.9
5
%
1.0
6
%
—
%
—
%
—
%
3
%
3
%
JDTF
0.6
(8
%)
0.6
(3
%)
(3
%)
—
%
—
%
1
%
(2
%)
Woodford Reserve
1.8
2
%
1.8
6
%
8
%
—
%
—
%
—
%
8
%
Old Forester
0.5
(1
%)
0.5
1
%
8
%
—
%
—
%
—
%
8
%
Rest of Whiskey
0.5
(20
%)
0.4
(21
%)
(23
%)
—
%
—
%
1
%
(22
%)
Ready-to-Drink
21.6
3
%
21.6
4
%
(6
%)
—
%
5
%
6
%
5
%
JD RTD/RTP
10.3
(4
%)
10.3
(2
%)
(8
%)
—
%
7
%
3
%
1
%
New Mix
11.3
11
%
11.3
11
%
(1
%)
—
%
—
%
13
%
13
%
Tequila
2.0
(11
%)
2.0
(11
%)
(14
%)
—
%
—
%
2
%
(12
%)
el Jimador
1.3
(10
%)
1.3
(12
%)
(13
%)
—
%
—
%
1
%
(11
%)
Herradura
0.6
(10
%)
0.6
(8
%)
(13
%)
—
%
—
%
3
%
(10
%)
Rest of Portfolio
2.1
(6
%)
2.1
(5
%)
(33
%)
31
%
—
%
1
%
(2
%)
Non-branded and bulk
NA
NA
NA
NA
18
%
1
%
—
%
—
%
18
%
Total Portfolio
46.8
(1
%)
46.7
2
%
(5
%)
3
%
1
%
2
%
1
%
Other Brands and Aggregations
Jack Daniel's Family
28.8
(4
%)
28.8
—
%
(2
%)
—
%
1
%
1
%
1
%
American Whiskey
20.9
(3
%)
20.8
1
%
1
%
—
%
—
%
1
%
2
%
Diplomático
0.3
4
%
0.3
28
%
27
%
—
%
—
%
(1
%)
26
%
Gin Mare
0.2
2
%
0.2
2
%
1
%
—
%
—
%
—
%
1
%
^See “Note 2 - Non-GAAP Financial Measures” for details on our use of Non-GAAP financial measures, how these measures are calculated, and the reasons why we believe this information is useful to readers. See “Note 3 - Definitions” for details on our brand aggregations and other metrics.
*Volumes are adjusted to (i) remove increases or decreases related to acquired and divested brands for periods not comparable year over year and (ii) reflect the Jack Daniel’s Country Cocktails business model change (JDCC) during fiscal 2024 and fiscal 2025. For additional information concerning acquisitions and divestitures impacting depletions and shipments and the change in JDCC, see the applicable defined terms in “Note 2 – Non-GAAP Financial Measures.”
Note: Totals may differ due to rounding.
Schedule C
Brown-Forman Corporation
Supplemental Statement of Operations Information (Unaudited)
Twelve Months Ended April 30, 2025
Net Sales % Change vs. Prior-Year Period
Geographic Area^
Reported
Acquisitions and Divestitures
Other Items
Foreign Exchange
Organic^
United States
(7
%)
3
%
1
%
—
%
(2
%)
Developed International
(6
%)
2
%
—
%
1
%
(3
%)
Germany
(4
%)
—
%
—
%
—
%
(3
%)
Australia
(2
%)
1
%
—
%
3
%
1
%
United Kingdom
(6
%)
—
%
—
%
(1
%)
(6
%)
France
—
%
—
%
—
%
—
%
—
%
Canada
(14
%)
4
%
—
%
2
%
(8
%)
Rest of Developed International
(9
%)
5
%
—
%
2
%
(3
%)
Emerging
(2
%)
5
%
—
%
6
%
9
%
Mexico
(8
%)
—
%
—
%
12
%
4
%
Poland
(11
%)
21
%
—
%
(5
%)
4
%
Brazil
12
%
—
%
—
%
7
%
19
%
Türkiye
30
%
1
%
—
%
12
%
43
%
Rest of Emerging
(2
%)
6
%
—
%
1
%
5
%
Travel Retail
(7
%)
2
%
—
%
—
%
(5
%)
Non-branded and bulk
18
%
1
%
—
%
—
%
18
%
Total
(5
%)
3
%
1
%
2
%
1
%
^See “Note 2 - Non-GAAP Financial Measures” for details on our use of Non-GAAP financial measures, how these measures are calculated, and the reasons why we believe this information is useful to readers. See “Note 3 - Definitions” for details on our geographic aggregations.
Note: Totals may differ due to rounding.
Schedule D
Brown-Forman Corporation
Supplemental Information (Unaudited) —
Estimated Net Change in Distributor Inventories
Twelve Months Ended April 30, 2025
Estimated Net Change in Distributor Inventories^ vs. Prior-Year Period
Geographic Area^ - Net Sales
United States
3%
Developed International
3%
Emerging
3%
Travel Retail
(1%)
Non-branded and bulk
—%
Product category / brand family / brand^
Whiskey
4%
JDTW
4%
JDTH
4%
Gentleman Jack
6%
JDTA
1%
JDTF
5%
Woodford Reserve
3%
Old Forester
—%
Rest of Whiskey
—%
Ready-to-Drink
2%
JD RTD/RTP
3%
New Mix
—%
Tequila
—%
el Jimador
(2%)
Herradura
3%
Rest of Portfolio
(1%)
Non-branded and bulk
—%
Statement of Operations Line Items
Net Sales
3%
Cost of Sales
3%
Gross Profit
3%
Operating Income
7%
^See “Note 3 - Definitions” for details on our geographic aggregations, brand aggregations, and other metrics.
A positive difference is interpreted as a net increase in distributors’ inventories; whereas, a negative difference is interpreted as a net decrease in distributors’ inventories.
Note 1 - All related commentary and percentage growth rates are on a reported basis and compared to the same prior-year periods, unless otherwise noted.
Note 2 - Non-GAAP Financial Measures
Use of Non-GAAP Financial Information. We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). Additionally, we use some financial measures in this press release that are not measures of financial performance under GAAP. These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results of operations and other measures reported under GAAP. Other companies may define or calculate these non-GAAP measures differently. Reconciliations of these non-GAAP measures to the most closely comparable GAAP measures are presented on Schedules A, B, and C of this press release.
“Organic change” in measures of statements of operations. We present changes in certain measures, or line items, of the statements of operations that are adjusted to an “organic” basis. We use “organic change” for the following measures: (a) organic net sales; (b) organic cost of sales; (c) organic gross profit; (d) organic advertising expenses; (e) organic selling, general, and administrative (SG&A) expenses; (f) organic other expense (income) net; (g) organic operating expenses*; and (h) organic operating income. To calculate these measures, we adjust, as applicable, for (1) acquisitions and divestitures, (2) impairment charges, (3) other items, and (4) foreign exchange. We explain these adjustments below.
*Operating expenses include advertising expenses, SG&A expenses, restructuring and other charges, and other expenses (income), net.
We use the non-GAAP measure “organic change,” along with other metrics, to: (a) understand our performance from period to period on a consistent basis; (b) compare our performance to that of our competitors; (c) calculate components of management incentive compensation; (d) plan and forecast; and (e) communicate our financial performance to the Board of Directors, stockholders, and the investment community. We have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We believe these non-GAAP measures are useful to readers and investors because they enhance the understanding of our historical financial performance and comparability between periods. When we provide guidance for organic change in certain measures of the statements of operations, we do not provide guidance for the corresponding GAAP change, as the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, such as foreign exchange, which could have a significant impact to our GAAP income statement measures.
In addition to the non-GAAP financial measures presented, we believe that our results are affected by changes in distributor inventories, particularly in our largest market, the United States, where the spirits industry is subject to regulations that essentially mandate a so-called “three-tier system,” with a value chain that includes suppliers, distributors, and retailers. Accordingly, we also provide information concerning estimated fluctuations in distributor inventories. We believe such information is useful in understanding our performance and trends as it provides relevant information regarding customers’ demand for our products. See Schedule D of this press release.
*This adjustment comprises $60 million of costs included in restructuring and other charges and $3 million of restructuring related inventory charges included in cost of sales.
Note 3 - Definitions
From time to time, to explain our results of operations or to highlight trends and uncertainties affecting our business, we aggregate markets according to stage of economic development as defined by the International Monetary Fund (IMF), and we aggregate brands by beverage alcohol category. Below, we define the geographic and brand aggregations used in this release.
Geographic Aggregations.
In Schedule C and Schedule D, we provide supplemental information for our top markets ranked by percentage of reported net sales. In addition to markets listed by country name, we include the following aggregations:
Brand Aggregations.
In Schedule B and Schedule D, we provide supplemental information for our top brands ranked by percentage of reported net sales. In addition to brands listed by name, we include the aggregations outlined below.
Beginning in fiscal 2025, we aggregated the “Wine” and “Vodka” product categories with “Rest of Portfolio,” due to the divestitures of Sonoma-Cutrer and Finlandia. Please refer to the new definition of “Rest of Portfolio” for more information. The fiscal 2024 “Rest of Portfolio” amounts have been adjusted accordingly for comparison purposes.
Other Metrics.
*Announced the end of the sales, marketing, and distribution relationship with Korbel California Cellars effective June 30, 2025.
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