Brown-Forman (BF.B) Reports Q1 2024 Earnings for Jack Daniel’s Maker

Brown-Forman, the maker of Jack Daniel’s, failed to meet expectations for its first quarter of fiscal 2024. The company faced challenges with lagging whiskey sales, supply issues, and the need to rebuild its inventory. Net sales for whiskey products decreased by 1%, with Woodford Reserve and Gentleman Jack being the hardest hit. Jack Daniel’s Tennessee Whiskey sales remained flat due to reduced distributor inventories across the United States.

Lawson Whiting, the CEO of Brown-Forman, acknowledged the impact of prior glass supply challenges on the company’s first quarter growth. Net sales in the U.S. market experienced an 8% decline in volume. However, there was growth in the ready-to-drink (RTD) and tequila categories. New Mix RTD beverages saw a net sales growth of 52%, while net sales for el Jimador tequila increased by 27%. The recent acquisitions of Gin Mare and Diplomático brands also contributed positively.

Whiting expressed confidence in the company’s people, brands, and business, and reaffirmed the full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth.

Brown-Forman reported a 3% increase in overall quarterly revenue compared to the previous year and maintained its full-year outlook. However, its earnings per share of 48 cents fell short of the expected 53 cents, and revenue of $1.04 billion was slightly below the expected $1.05 billion.

Despite the decline in net income for the period, the company attributed it to increased marketing and operating costs. Advertising expenses rose by 19% due to the launch of new products and acquisitions.

Source: Brown-Forman

— CNBC’s Robert Hum contributed to this report.