Financial Performance - For the fiscal year ended April 30, 2024, net sales were $4,178 million, a decrease of 1.2% compared to $4,228 million in 2023[36] - Gross profit for the same period was $2,526 million, reflecting an increase of 1.3% from $2,494 million in 2023[36] - Operating income increased to $1,414 million in 2024, up 25.5% from $1,127 million in 2023[36] - Net income for the fiscal year 2024 was $1,024 million, representing a 30.9% increase from $783 million in 2023[36] - Basic earnings per share rose to $2.15 in 2024, compared to $1.63 in 2023, marking a 32% increase[36] Cash and Debt Management - Cash and cash equivalents were reported at $446 million, with short-term commercial paper borrowings of $429 million exposed to interest rate changes[25] - The company has a committed revolving credit agreement of $900 million, expiring in May 2028, with no borrowings outstanding as of April 30, 2024[77] Shareholder Information - As of April 30, 2024, total shares outstanding are 472,600 thousand, a decrease from 479,316 thousand in 2023, reflecting a reduction of approximately 1.5%[78] - The company has approximately 11,269,000 shares available for issuance under the 2022 Omnibus Compensation Plan as of April 30, 2024[115] Pension and Benefits - The funded status of pension benefits as of April 30, 2024, shows a net liability of $103 million, down from $125 million in 2023[86] - The company projects pension benefits of $54 million for 2025 and 2026, with a gradual increase to $57 million by 2029[82] - The company has recognized a net actuarial gain of $20 million for pension benefits in 2024, following a loss of $29 million in 2023[87] - The total fair value of pension plan assets decreased from $606 million as of April 30, 2023, to $576 million as of April 30, 2024[105] Revenue Growth - Revenue from the United States increased from $1,917 million in 2022 to $1,968 million in 2023, representing a growth of approximately 2.7%[79] - The total revenue for 2023 was $4,228 million, up from $3,933 million in 2022, indicating a year-over-year increase of about 7.5%[80] - Whiskey sales for 2023 reached $2,915 million, a rise from $2,756 million in 2022, marking an increase of approximately 5.8%[80] - The company plans to continue expanding its market presence, particularly in emerging markets, where revenue grew from $714 million in 2022 to $842 million in 2023, an increase of approximately 17.9%[79] Risks and Challenges - The company faces potential adverse effects from unfavorable economic conditions, including inflation and economic slowdowns, which could reduce consumer demand for its products[117] - The company’s financial results could be negatively impacted by product recalls or liability claims, affecting brand reputation and sales[119] - The company operates in over 170 countries, facing commercial, political, and financial risks that could disrupt business operations and affect stock prices[124] - Tariffs imposed in 2018 negatively impacted the business until they were removed or suspended in late fiscal 2022 and early fiscal 2023, highlighting the vulnerability to international trade policies[125] - The company faces risks related to the availability and cost of raw materials, which could adversely affect financial results if not managed effectively[141] - The company may incur increased costs due to health epidemics or pandemics, which could materially affect operations and financial results[152] - Health epidemics and pandemics pose risks that could materially and adversely affect the company's operations and financial results[151] - The company is significantly dependent on the health of the Jack Daniel's family of brands, which could impact sales and marketing efforts[166] - Changes in consumer preferences and a potential decline in the social acceptability of beverage alcohol could negatively affect business results[158] - The company faces substantial competition from new entrants and consolidations by competitors, which may lead to pricing pressures and affect financial results[166] Regulatory and Compliance - The company is committed to compliance with anti-corruption laws, with potential violations leading to investigations and financial penalties[126] - The company is subject to extensive regulatory requirements that could lead to increased costs or limit business activities[161] - Regulatory changes regarding greenhouse gas emissions and environmental issues could increase operating costs, impacting profitability[154] - The U.S. Inflation Reduction Act of 2022 implemented a 15% minimum tax on book income for large corporations, which could adversely affect the company's effective tax rate and net earnings[155] - Potential changes in global tax rules, including a proposed global minimum tax rate of 15%, could have a material adverse impact on net income and cash flows[162] Operational Challenges - The company experienced supply chain disruptions that increased production costs and constrained product availability, prompting actions to diversify suppliers[143] - Disruptions in the distribution network or inventory fluctuations could negatively affect sales and financial performance[157] - The company may not succeed in its strategies for acquisitions and investments, which could lead to financial losses or integration challenges[148] - The company’s growth strategy relies on product innovation, but there is no assurance that successful new products or line extensions will continue to be developed[160] - The company recorded a $7 million impairment charge related to the write-off of an immaterial discontinued brand name during fiscal 2024[97] - The company recognized a non-cash impairment charge of $96 million for the Finlandia brand name during fiscal 2023, primarily due to higher discount rates and input costs[97] Currency Exposure - The company’s net exposure to foreign currency changes is significant, as foreign currency revenues exceed foreign currency expenses, impacting financial results based on the strength of the U.S. dollar[91] - Fluctuations in foreign currency exchange rates relative to the U.S. dollar could materially impact financial results due to the global nature of operations[127]

Financial Performance - For fiscal 2024, reported net sales decreased 1% to $4.2 billion, with an organic basis decline of 1%[25] - Reported operating income increased 25% to $1.4 billion, while organic operating income decreased by 2%[25] - Diluted earnings per share rose 32% to $2.14, reflecting strong operating performance[25] - The company anticipates organic operating income growth in the range of 2% to 4% for fiscal 2025[14] - The company returned $804 million to stockholders through dividends and share repurchase programs[29] - For the three months ended April 30, 2024, reported net sales decreased by 8% compared to the prior year, with organic net sales down by 5%[70] - Gross profit reported a decrease of 10%, while organic gross profit declined by 8% for the same period[70] - Operating income increased by 26%, with an organic change in operating income showing a decrease of 16%[70] - The company recognized a pre-tax gain of $175 million from the sale of its Sonoma-Cutrer wine business, along with $50 million in cash[79] - The company sold its Finlandia vodka business, resulting in a pre-tax gain of $92 million[97] Sales and Market Performance - The Tequila portfolio reported net sales decline of 4% (-7% organic), with Herradura's sales down 10% (-13% organic)[6] - Emerging markets saw reported net sales growth of 5% (+8% organic), driven by strong performance in Mexico and Brazil[9] - Whiskey depletions decreased by 2% to 21.7 million cases, with a reported net sales decline of 3%[49] - Ready-to-Drink category saw a 3% decrease in depletions to 21.0 million cases, with net sales growth of 2%[49] - Tequila depletions fell by 11% to 2.3 million cases, resulting in a 4% decline in net sales[49] - Vodka depletions decreased by 6% to 1.2 million cases, with a significant net sales drop of 16%[49] - The total portfolio's other brand depletions aggregated to 48.8 million cases, reflecting a 2% decrease[49] - The United States market experienced a reported net sales decline of 4%, with organic sales also down by 4%[73] - Emerging markets reported a net sales increase of 5%, with organic sales growth of 8%[73] Expenses and Investments - Gross profit increased 1% (+2% organic) with gross margin expansion of 150 basis points to 60.5%[10] - Reported advertising expense grew 4% (+2% organic), reflecting increased investment in key brands[34] - Advertising expenses reported a decrease of 14%, while organic advertising expenses decreased by 12%[70] - Capital expenditures are planned to be between $195 million and $205 million for fiscal 2025[15] Community and Corporate Responsibility - The company committed $23 million to the Brown-Forman Foundation and Dendrifund to support community initiatives[58] Acquisitions and Strategic Moves - The acquisition of Diplomático Rum and related assets occurred during the third quarter of fiscal 2023, impacting future performance metrics[55] Financial Position and Assets - Total assets increased from $7,777 million in April 2023 to $8,166 million in April 2024[67] - Cash and cash equivalents rose from $374 million in April 2023 to $446 million in April 2024[67] - Total liabilities increased from $4,509 million in April 2023 to $4,649 million in April 2024[67] - Cash dividends paid per common share increased from $0.2055 in 2023 to $0.2178 in 2024[65] - The company reported a 29% increase in income before income taxes, rising from $269 million in 2023 to $347 million in 2024[65] Inventory and Demand Insights - The estimated net change in distributor inventories showed a decrease of 4% in the United States and 12% in emerging markets[75] - The company provides information on estimated fluctuations in distributor inventories, particularly in the United States, which is crucial for understanding performance and trends[101] - The estimated net change in distributor inventories is calculated to provide insights into actual consumer demand versus shipments[115] - The depletion-based amount is calculated to assess the impact of inventory changes on organic net sales[116] Employee and Global Operations - The company operates globally with approximately 5,700 employees and sells products in over 170 countries[63] Brand Performance - The Jack Daniel's family of brands continues to be a significant contributor, with various expressions showing mixed performance in sales trends[96] - The company categorizes its whiskey products, including brands like Jack Daniel's, Woodford Reserve, and Old Forester, which are significant contributors to net sales[107] - The "Ready-to-Drink" category includes products such as Jack Daniel's RTD and RTP, indicating a growing segment in the portfolio[109] - Organic change measures are used to assess performance consistently and compare with competitors[59]

Financial Performance - Reported net sales of $3.2 billion for the nine months ended January 31, 2024, an increase of 1% compared to the same period last year, driven by favorable price/mix and acquisitions, partially offset by lower volumes [175]. - Reported gross profit of $2.0 billion for the nine months ended January 31, 2024, an increase of $98 million, or 5%, with gross margin increasing 2.5 percentage points to 60.9% [175]. - Reported operating income of $1.0 billion for the nine months ended January 31, 2024, an increase of 25% compared to the same period last year [175]. - Diluted earnings per share of $1.58 for the nine months ended January 31, 2024, an increase of 32% from $1.20 reported for the same period last year [175]. - Reported net sales for the nine months ended January 31, 2024, were $3,214 million, reflecting a 1% increase compared to the prior year [204]. - Gross profit for the three months ended January 31, 2024, was $635 million, a 2% increase from the previous year, with a gross profit margin of 59.4% [204]. - Operating income for the three months ended January 31, 2024, was $373 million, a significant increase of 116% compared to the same period last year [204]. - The effective tax rate for the three months ended January 31, 2024, was 16.5%, a decrease of 3.0 percentage points from the previous year [204]. - The effective tax rate for the nine months ended January 31, 2024, was 20.3%, down from 23.0% for the same period last year [225]. - Reported gross profit for the nine months ended January 31, 2024, was $2.0 billion, an increase of $98 million, or 5% compared to the same period last year [220]. - Reported gross profit for the three months ended January 31, 2024, was $635 million, an increase of $11 million, or 2%, with gross margin rising 1.8 percentage points to 59.4% [250]. Sales Performance by Region - Germany's reported net sales increased 12% driven by the launch of Jack Daniel's & Coca-Cola RTD and acquisitions, partially offset by lower volumes [178]. - Mexico's reported net sales increased 22% driven by higher prices of New Mix and positive foreign exchange effects, partially offset by lower volumes of el Jimador [179]. - Brazil's reported net sales increased 12% led by higher volumes of JDTA and positive foreign exchange effects, partially offset by lower JDTW volumes [179]. - Reported net sales growth in emerging markets and Travel Retail was partially offset by declines in developed international and the United States [173]. - Emerging markets, including Mexico, Poland, and Brazil, showed strong growth with net sales increases of 22%, 24%, and 12% respectively [205]. - Reported net sales in Japan declined 100% due to lower volumes and an estimated net decrease in distributor inventories [207]. - Reported net sales in the Rest of Developed International increased 11%, driven by acquisitions and new product launches [207]. - Travel Retail's reported net sales increased 3%, supported by growth in the super-premium American whiskey portfolio [208]. - JDTA reported net sales increased 44%, attributed to higher volumes in Brazil and a product launch in South Korea [241]. - Reported net sales for JDTW decreased 6%, impacted by declines in multiple regions and an estimated net decrease in distributor inventories [239]. Acquisitions and Divestitures - During the third quarter of fiscal 2024, the company sold its Finlandia vodka business, resulting in a pre-tax gain of $90 million [174]. - The company reached an agreement to sell its Sonoma-Cutrer wine business, expected to close in the fourth quarter of fiscal 2024 [180]. - The company acquired the Gin Mare and Diplomático brands, contributing positively to net sales growth and operating income for the nine months ended January 31, 2024 [202]. - Reported net sales for the Rest of Portfolio increased 79%, largely driven by acquisitions [246]. Expenses and Cash Flow - Total operating expenses decreased by 42% for the three months ended January 31, 2024, compared to the same period last year [204]. - Reported operating expenses totaled $918 million for the nine months ended January 31, 2024, a decrease of $112 million, or 11%, compared to the same period last year [253]. - Cash flows from operations were $362 million for the nine months ended January 31, 2024, a decline of $48 million from the same period last year [259]. - Cash used for financing activities was $212 million during the nine months ended January 31, 2024, compared to $468 million in cash provided by financing activities in the prior-year period [260]. - Cash and cash equivalents increased from $374 million at April 30, 2023, to $589 million at January 31, 2024 [257]. Future Outlook - The company expects organic net sales to be flat for fiscal 2024, with organic operating income growth anticipated in the 0% to 2% range [256]. - Capital expenditures for fiscal 2024 are planned to be in the range of $230 to $240 million [256]. - The Board of Directors authorized a share repurchase program of up to $400 million from October 2, 2023, through October 1, 2024 [261].

Financial Performance - Third quarter reported net sales decreased 1% to $1.1 billion (-2% organic) compared to the prior-year period[1] - Reported operating income increased 116% to $373 million (+5% organic) and diluted earnings per share increased 189% to $0.60[1] - Year-to-date reported net sales increased 1% to $3.2 billion (flat on an organic basis) compared to the same prior-year period[7] - Year-to-date reported operating income increased 25% to $1.0 billion (+2% organic) and diluted earnings per share increased 32% to $1.58[7] - Reported net sales for the nine months ended January 31, 2024, were $3,214 million, reflecting a 1% increase compared to $3,182 million in the prior year[37] - Operating income rose by 25% to $1,039 million, compared to $829 million in the same period last year[37] - Net income for the nine months ended January 31, 2024, was $758 million, a 32% increase from $576 million[37] - Earnings per share (diluted) increased by 32% to $1.58 for the nine months ended January 31, 2024, compared to $1.20 in the prior year[37] Sales Growth - The recently acquired brands, Gin Mare and Diplomático, drove Rest of Portfolio's reported net sales growth of 79% (+11% organic)[2] - Jack Daniel's Tennessee Apple delivered double-digit reported net sales growth of 44% (+45% organic)[3] - New Mix brand reported a strong net sales growth of 34%, with 17% organic growth[40] - The company experienced reported net sales growth in Emerging markets and the Travel Retail channel, offset by declines in Developed International markets and the United States[42] - The emerging markets, particularly Mexico, Poland, and Brazil, showed strong growth with net sales increasing by 22%, 24%, and 12% respectively[64] Cost and Profitability - Reported gross profit increased 5% (+6% organic) with gross margin expansion of 250 basis points to 60.9%[27] - Gross profit increased by 5% to $1,957 million for the nine months ended January 31, 2024, up from $1,859 million[37] - The company reported a 4% decrease in the cost of sales, contributing to a gross profit decline of 5%[82] Market Trends - The Jack Daniel's family of brands reported depletions of 23.4 million, reflecting a 4% decrease compared to the prior-year period[78] - The company’s "Tequila" category, including brands like Herradura and el Jimador, experienced a 9% decrease in depletions[78] - Consumer takeaway data indicates trends in market demand, with estimates derived from retail sales value metrics[103] Strategic Actions - The sale of the Finlandia vodka brand generated a pre-tax gain of $90 million[4] - The $400 million share repurchase program was completed as of December 31, 2023[4] - The company reached an agreement to sell its Sonoma-Cutrer wine business, expected to close in the fourth quarter of fiscal 2024, with transaction costs related to this disposition being adjusted out[71] - The company acquired Gin Mare Brand, S.L.U. and Mareliquid Vantguard, S.L.U. during the third quarter of fiscal 2023, impacting financial results[84] Tax and Financial Adjustments - The effective tax rate decreased to 20.3% for the nine months ended January 31, 2024, down from 23.0% in the prior year[37] - Organic net sales adjustments are made to account for acquisitions, divestitures, foreign exchange, and impairment charges[83] - A non-cash impairment charge of $96 million for the Finlandia brand name was recognized during the third quarter of fiscal 2023, which was adjusted for organic results[74] - A gain of $7 million was recognized on the sale of certain fixed assets during the second quarter of fiscal 2024, which was also adjusted for organic results[72] Future Outlook - The company expects organic net sales to be flat for fiscal 2024, with organic operating income growth anticipated in the 0% to 2% range[15] - Capital expenditures are now planned to be in the range of $230 to $240 million[44] - The company recognized that changes in distributor inventories can affect organic trends, with a positive difference indicating a net increase in inventories[95]

Financial Performance - For the six months ended October 31, 2023, reported net sales in the United States decreased by 4%, with an organic change of -5%[206]. - Reported net sales for the six months ended October 31, 2023, were $2.1 billion, a 2% increase compared to the same period last year, driven by favorable price/mix and acquisitions[228]. - Gross profit for the same period was $1.3 billion, an increase of $87 million or 7%, with gross margin rising to 61.6% from 58.8%[228]. - Operating income for the six months ended October 31, 2023, was $666 million, reflecting a 1% increase year-over-year[228]. - Diluted earnings per share decreased by 1% to $0.98, primarily due to higher interest expenses[228]. - Reported net sales in Japan declined by 79% due to lower volumes of JDTW, with plans to distribute own brands starting April 1, 2024[231]. - Reported net sales in the Rest of Developed International increased by 23%, driven by acquisitions and new product launches[231]. - Travel Retail's reported net sales increased by 3%, supported by growth in the super-premium American whiskey portfolio[232]. - Woodford Reserve's reported net sales decreased by 3%, impacted by lower volumes in the United States[234]. - JDTH reported net sales decreased by 7%, primarily due to volumetric declines in the United States and a net decrease in distributor inventories[254]. - Gentleman Jack's net sales also decreased by 7%, attributed to lower volumes in the United States and negative foreign exchange effects, partially offset by higher volumes in emerging markets[254]. - JDTA's net sales increased by 51%, driven by a product launch in South Korea and higher volumes in Brazil[255]. - JD RTD/RTP brands saw a 2% increase in net sales, supported by the launch of Jack Daniel's & Coca-Cola RTD and favorable foreign exchange effects[256]. - Herradura's net sales declined by 5%, impacted by lower volumes in the United States and an unfavorable portfolio mix shift, though partially offset by positive foreign exchange and higher prices in Mexico[257]. Acquisitions and Divestitures - The Diplomático acquisition was completed for a total cash price of $723 million, reflecting a post-closing working capital adjustment of $4 million[185]. - The company agreed to sell its Finlandia vodka business to Coca-Cola HBC AG for $220 million, with an estimated adjusted sales price of $194 million as of October 31, 2023[188]. - The Sonoma-Cutrer wine business is set to be sold to The Duckhorn Portfolio, Inc. for $50 million in cash and a 21.5% ownership stake[190]. Market Performance - Emerging markets saw a 17% increase in reported net sales, with Mexico growing by 30% and Poland by 26%[206]. - Vodka (Finlandia) reported a 4% increase in net sales, driven by growth in Ukraine and Poland[212]. Expenses and Costs - Reported cost of sales for the three months ended October 31, 2023, was $436 million, a decrease of $45 million or 9% compared to the same period last year[259]. - SG&A expenses increased by 10% for the six months ended October 31, 2023, primarily due to higher compensation and benefit-related expenses[262]. - Total operating expenses increased by 11% year-over-year, with organic growth contributing 8%[261]. Taxation - The effective tax rate for the three months ended October 31, 2023, was 22.0%, down from 23.7% in the prior year[243]. - The effective tax rate for the six months ended October 31, 2023, was 22.4%, down from 23.7% in the same period last year, mainly due to decreased state tax impacts[263]. Asset and Liability Overview - The total assets as of October 31, 2023, were reported at $779 million, with total liabilities of $56 million[186]. - Cash used for investing activities was $61 million during the six months ended October 31, 2023, reflecting an increase in capital expenditures[248]. Operational Adjustments - The company uses "organic change" to adjust financial measures for acquisitions and divestitures, providing a clearer view of operational performance[216]. - The company has effective disclosure controls and procedures in place to ensure timely and accurate reporting of required information[168].

FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ | --- | --- | --- | --- | |---------------------------------------------------|-------|-------------------|-------------------------------------------| | Title of each class | | Trading Symbol(s) | Name of each exchange on which registered | | Class A Common Stock (voting), $0.15 par value | | BFA | New York Stock Exchange | | Class B Common S ...

Below we discuss our outlook for fiscal 2024, which reflects the trends, developments, and uncertainties (including those described above) that we expect to affect our business. 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 o ...

FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Large accelerated filer☑ Non-acceleratedfiler☐ Page PART I - FINANCIAL INFORMATION 3 Item 3. Quantitative and Qualitative Disclosures about Market Risk 35 Item 1A. Risk Factors 37 Item 4. Mine Safety Disclosures 37 SIGNATURES 39 BROWN-FORMAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in mi ...

United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ | --- | --- | |------------------------------------------|--------------------------------------------------------| | | | ...

United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ | --- | --- | |------------------------------------------|--------------------------------------------------------| | | | | ...