Brown-Forman Corporation reported a net sales figure of $4.0 billion for the fiscal year ending April 30, 2025, reflecting a 5% decrease compared to the previous fiscal year. The decline was attributed to several factors, including the impact of divestitures, particularly the sale of the Finlandia vodka and Sonoma-Cutrer wine businesses, as well as unfavorable foreign exchange rates. Despite these challenges, organic net sales increased by 1%, indicating some resilience in core operations. Gross profit also fell to $2.3 billion, down 7% from the prior year, with a gross margin of 58.9%, a decrease of 1.5 percentage points.
The company experienced a significant drop in operating income, which fell by 22% to $1.1 billion, primarily due to the absence of gains from previous divestitures and an impairment charge of $47 million related to the Gin Mare brand. Diluted earnings per share decreased by 14% to $1.84. The restructuring initiative, which included a workforce reduction of approximately 12% and the closure of the Louisville-based Brown-Forman Cooperage, resulted in charges of $63 million, further impacting profitability.
Strategically, Brown-Forman has focused on innovation and expanding its product offerings. The company launched several new products, including Jack Daniel’s 14 Year Old and Woodford Reserve Double Double Oaked, which contributed to brand growth. The Jack Daniel’s family of brands remains a key driver of revenue, with the company continuing to invest in marketing and brand-building initiatives. Additionally, the establishment of a new distribution company in Italy in May 2025 marks a significant step in enhancing its global reach.
Operationally, Brown-Forman employed approximately 5,000 people across six continents, with a notable presence in the United States. The company reported that its two largest customers accounted for 13% and 11% of consolidated net sales, indicating a diversified customer base. The company’s outlook for fiscal 2026 anticipates continued challenges, projecting a low-single-digit decline in organic net sales and operating income, while emphasizing a commitment to long-term growth through strategic initiatives and product innovation.
About BROWN FORMAN CORP
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