Brown-Forman reported first-quarter fiscal 2027 net sales of $911 million, down 1% on both a reported and organic basis.
Reported operating income declined 3% to $252 million, although organic operating income increased 4%. Diluted EPS increased 6% to $0.38.
Gross margin expanded 40 basis points to 60.2%, while cash flow from operations increased by $13 million to $173 million and free cash flow increased by $32 million to $161 million.
Ready-to-Drink portfolio net sales increased 20%, including 11% organic growth. New Mix revenue increased 48% as reported and 36% organically, supported by demand in Mexico and its U.S. launch.
Whiskey sales were flat, with the international rollout of Jack Daniel’s Tennessee Blackberry offset by declines in Jack Daniel’s Tennessee Honey and Gentleman Jack.
Tequila sales declined 12%, while U.S. net sales declined 3%. Emerging-market sales increased 11%, driven by Mexico.
Brown-Forman reaffirmed its fiscal 2027 outlook, expecting organic net sales to be approximately flat and organic operating income to decline 3% to 5%.
The company plans capital expenditures of approximately $60 million to $70 million.
KEY QUOTE:
“Our first quarter results were largely in line with our expectations and reinforce our confidence in the year ahead. Innovation remains an important growth driver. Momentum from New Mix, our Ready-to-Drink portfolio, and Jack Daniel’s Tennessee Blackberry helped offset pressures elsewhere in the business and demonstrates our ability to create new opportunities for growth even in a challenging operating environment.”
Lawson Whiting, President and Chief Executive Officer of Brown-Forman
