Jack Daniel's Parent Brown-Forman Q1 Earnings Miss Estimates

Brown-Forman Corp (NYSE: BF-B) (NYSE: BF-A) reported first-quarter FY24 sales growth of 3% year-on-year to $1.04 billion, missing the analyst consensus of $1.05 billion.

EPS of $0.48 missed the analyst consensus of $0.53.

The gross margin expanded 100 basis points Y/Y to 62.7%. The operating margin contracted 250 basis points to 31.5%, and operating income for the quarter fell 4% to $327 million.

The company held $426 million in cash and equivalents as of July 31, 2023. Cash provided by operating activities totaled $38 million.

"As anticipated, our first quarter growth was impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges," said President and CEO Lawson Whiting.

Outlook: Brown-Forman reaffirmed its full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth.

The company anticipates FY24 capital expenditure of $250 million - $270 million.

"While we remain optimistic about our prospects for growth of organic net sales and organic operating income in fiscal 2024, we continue to believe trends will normalize after two consecutive years of double-digit organic net sales growth," the company said.

Price Action: BF-B shares are trading lower by 5.26% at $65.40 on the last check Wednesday.