Brown-Forman shares rise 3% as Q3 earnings beat estimates

Published 05/03/2025, 14:28

NEW YORK - Brown-Forman Corporation (NYSE:BFA, BFB) reported third-quarter earnings that surpassed analyst expectations, sending shares up 3.4% in premarket trading.

The spirits maker posted adjusted earnings per share of $0.57, beating the consensus estimate of $0.47, despite a 3% YoY decline in reported net sales to $1.0 billion.

The company’s organic net sales grew 6% in the quarter, demonstrating resilience in a challenging market environment. Brown-Forman reaffirmed its full-year outlook, projecting organic net sales and operating income growth of 2% to 4% for fiscal 2025.

"We are pleased to reaffirm our outlook for organic top and bottom line growth in fiscal 2025 and are proud of our team’s ability to deliver industry-leading growth in this challenging environment," said Lawson Whiting, Brown-Forman’s President and Chief Executive Officer.

For the nine months ended January 31, 2025, reported net sales decreased 4% to $3.1 billion, while organic net sales grew 2%. The company’s year-to-date diluted earnings per share fell 4% to $1.53.

Brown-Forman’s Whiskey portfolio showed signs of improvement, with flat reported net sales but 2% organic growth. The Tequila portfolio faced challenges, with net sales declining 15% (-13% organic) due to competitive pressures in the U.S. and macroeconomic headwinds in Mexico.

The company’s gross margin contracted 150 basis points to 59.4%, primarily due to higher costs and foreign exchange impacts, partially offset by favorable price/mix. Brown-Forman also recognized a $78 million gain on the sale of its investment in The Duckhorn Portfolio, Inc., contributing $0.14 to diluted earnings per share.

Despite ongoing market uncertainties, Brown-Forman maintained its quarterly dividend of $0.2265 per share, marking its 81st consecutive year of regular quarterly cash dividends and 41st consecutive year of dividend increases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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