Brown Forman Corp (BF.A)

Shares of Brown Forman Corporation (BF.A) dropped by 10.09% from $61.94 to $55.69 in the trading on Wednesday, December 6, 2023. The reason why BF.A is down today is due to mixed second-quarter fiscal 2024 results.

• Earnings and Sales: In the second quarter of fiscal 2024, Brown-Forman reported earnings per share (EPS) of $0.50, meeting expectations and reflecting a 6% YoY increase. However, net sales of $1,107 million missed the Zacks Consensus Estimate of $1,156 million.
• Gross Profit: Gross profit increased by 9% YoY to ** $671 million**, with a gross margin expansion of 460 basis points to 60.6%, driven by price/mix improvements, reduced supply-chain disruption costs, and lower tariff-related expenses.
• Operating Expenses: Operating expenses rose, with selling, general, and administrative expenses up 7% YoY, and advertising expenses increasing by 16% due to new product launches and acquisitions.
• Outlook: The company lowered its fiscal 2024 outlook, with anticipated organic sales growth of 3-5% (down from 5-7%) and organic operating income growth of 4-6%. Operating income is expected to benefit from organic net sales growth and lower supply-chain-disruption costs but offset by input cost inflation pressures.