Brown Forman Q4 Earnings Call Highlights

Key Points

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• Brown-Forman finished fiscal 2026 up of expectations, with integrated nett income and integrated operating income some supra guidance contempt weakness successful U.S. discretionary spending, developed planetary markets, Canada, and utilized tube sales.

• Growth was driven by emerging markets, question retail, and innovation, particularly New Mix successful Mexico and Jack Daniel’s Tennessee Blackberry, which became a standout motorboat and helped offset declines successful developed regions.

• The institution is cautious connected fiscal 2027, forecasting astir level integrated income and a 3% to 5% diminution successful integrated operating income arsenic macro pressure, higher input costs, and the Canada support contented proceed to measurement connected results.

Brown Forman (NYSE:BF.A) said it finished fiscal 2026 up of its integrated expectations, contempt continued unit from weaker discretionary spending successful the U.S. and developed planetary markets, little utilized tube income and the ongoing lack of American spirits from galore Canadian shelves.

President and Chief Executive Officer Lawson Whiting said the institution “delivered a beardown decorativeness to fiscal 2026,” with full-year integrated nett income and integrated operating income supra the company’s expectations. He said the show reflected maturation successful emerging planetary markets, momentum successful question retail and continued contributions from caller products, peculiarly Jack Daniel’s Tennessee Blackberry.

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For the year, Brown-Forman reported that nett income declined 1%, portion integrated nett income were level aft adjusting for the lack of Korbel and Sonoma-Cutrer and the effect of overseas exchange. Whiting noted that Brown-Forman is “no longer successful the vino oregon champagne business” pursuing those portfolio changes.

Emerging Markets and Travel Retail Offset Developed-Market Weakness

Whiting said emerging planetary markets delivered 12% integrated nett income growth, led by beardown double-digit show from New Mix successful Mexico. He described New Mix arsenic Mexico’s archetypal tequila ready-to-drink marque and said it continued gaining marketplace stock successful the country’s fast-growing RTD category.

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The question retail transmission posted 5% integrated nett income growth, driven by Jack Daniel’s Tennessee Whiskey and supported by higher traveler volumes and caller launches including Jack Daniel’s Tennessee Blackberry and Jack Daniel’s Heritage Barrel.

Developed planetary markets declined 3% organically. Canada was the largest drag, with integrated nett income down astir 60% arsenic American-made products remained disconnected shelves successful astir Canadian provinces. Whiting besides cited anemic spirits trends successful Germany and the U.K., wherever Brown-Forman’s integrated nett income fell 7% and 9%, respectively.