BROWN FORMAN CORP
For the period ended Jan 31, 2025. Filed Mar 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2025 · Filed Mar 5, 2025
BF-A$31.47-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-31; filed 2024-12-05.
0000014693-24-000175
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-01-31; filed 2025-03-05.
0000014693-25-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 178 previous paragraphs and 181 current paragraphs.
102 unchanged; 58 reworded; 19 added; 16 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
1 Operating expenses include advertising expense, SG&A expense, restructuring and other charges, and other expense (income), net.
Current report
“Restructuring and other charges.”During the third quarter of fiscal 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth. This included reducing our workforce by approximately 12% and closing the Louisville-based Brown-Forman Cooperage. We also offered a special, one-time early retirement benefit to qualifying U.S. employees. Collectively, this adjustment removes the $33 million impact from our operating expenses and operating income.
Current report
Unless otherwise indicated, all related commentary is on a reported basis and is for the nine months ended January 31, 2025 compared to the same period last year.
Current report
Restructuring and other charges
Current report
During the third quarter of fiscal 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth. This included reducing the company’s workforce by approximately 12% and closing the Louisville-based Brown-Forman Cooperage. We also offered a special, one-time early retirement benefit to qualifying U.S. employees. Collectively, these actions negatively impacted our operating expenses and operating income for the three months and nine months ended January 31, 2025. See Note 6 to the Condensed Consolidated Financial Statements for more information.
Current report
•We delivered gross profit of $1.8 billion for the nine months ended January 31, 2025, a decrease of 6%. Gross margin decreased 1.5 percentage points to 59.4% from 60.9% in the same period last year. The decrease in gross margin was largely driven by the higher costs and the negative effect of foreign exchange, partially offset by favorable price/mix, the impact of JDCC, and the positive effect of acquisitions and divestitures.
Current report
2 Operating expenses include advertising expense, SG&A expense, restructuring and other charges, and other expense (income), net.
Current report
•Australia’s net sales declined 1% driven by the negative effect of foreign exchange and declines of agency brands, partially offset by growth of JD RTDs and JDTW.
Current report
•Poland’s net sales declined 13% driven by the divestiture of Finlandia, partially offset by growth of JDTW and the positive effect of foreign exchange.
Current report
•Net sales for JDTH declined 1% driven by the negative effect of foreign exchange and lower volumes in developed international markets, partially offset by growth in emerging international markets. An estimated net increase in distributor inventories positively impacted net sales.
Current report
•New Mixnet sales increased 2% driven by higher volumes, partially offset by the negative effect of foreign exchange.
Current report
•Herradura’s net sales declined 13% led by lower volumes in Mexico.
Current report
For the three months ended January 31, 2025, cost of sales were $416 million, a decrease of $17 million, or 4%, driven by (a) the positive effect of the acquisitions and divestitures; (b) the impact of JDCC; (c) a shift in portfolio mix toward our lower-cost brands; and (d) the positive effect of foreign exchange. The declines were partially offset by higher input costs, unfavorable fixed cost absorption related to decreased production levels of our full-strength portfolio, and higher volumes of New Mix and JDTW.
Current report
For the nine months ended January 31, 2025, cost of sales were $1.3 billion, a decrease of $6 million, as the positive effect of acquisitions and divestitures and the impact of JDCC were offset by higher input costs, unfavorable fixed cost absorption related to decreased production levels of our full-strength portfolio, and higher volumes of New Mix and JDTW.
Current report
•Advertising expense decreased 13% for the three months ended January 31, 2025 driven by timing of lower JDTW and JDTA spend, as well as the positive effect of foreign exchange and the impact of our recently divested brands.
Current report
For the three months ended January 31, 2025, operating income totaled $280 million, a decrease of $93 million, or 25%, compared to the same period last year. Operating margin decreased 7.8 percentage points to 27.1% from 34.9% in the same period last year driven by (a) the negative effect of acquisitions and divestitures (largely due to the absence of the gain on sale of the Finlandia vodka business); (b) restructuring and other charges; (c) the negative effect of foreign exchange; and (d) higher costs. The decrease was partially offset by lower SG&A and advertising expenses along with favorable price/mix.
Current report
The operating environment continues to be increasingly volatile due to geopolitical uncertainties and global macroeconomic conditions. Based on the currently known factors, we anticipate a return to organic net sales and organic operating income growth for fiscal 2025. Accordingly, we reaffirm the following expectations:
Current report
•Capital expenditures planned to be in the range of $180 to $190 million.
Current report
The forecasted effective tax rate range has been updated to approximately 20% to 22% from 21% to 23%.
Removed paragraphs (16)
Previous report
1 Operating expenses include advertising expense, SG&A expense, and other expense (income), net.
Previous report
Unless otherwise indicated, all related commentary is on a reported basis and is for the six months ended October 31, 2024 compared to the same period last year.
Previous report
•We delivered gross profit of $1.2 billion for the six months ended October 31, 2024, a decrease of 8%. Gross margin decreased 2.4 percentage points to 59.2% from 61.6% in the same period last year. The decrease in gross margin was largely driven by the timing of input cost fluctuations coupled with high inventory levels, the negative effect of foreign exchange, and the impact of the TSAs for the divestitures (as described above), partially offset by favorable price/mix and the impact of JDCC.
Previous report
2 Operating expenses include advertising expense, SG&A expense, and other expense (income), net.
Previous report
•Australia’s net sales decreased 5% driven by declines of JD RTDs and local market agency brands.
Previous report
•Poland’s net sales declined 15% driven by the divestiture of Finlandia and lower volumes of Gentleman Jack, partially offset by the positive effect of foreign exchange.
Previous report
•Net sales for JDTF declined 3% driven by lower volumes in the developed international markets and the United States, as well as the negative effect of foreign exchange. The decline was partially offset by higher volumes in the emerging markets, led by Brazil.
Previous report
•New Mixnet sales declined 1% driven by the negative effect of foreign exchange, partially offset by higher volumes and favorable price/mix in Mexico.
Previous report
•Herradura’s net sales decreased 14% driven by declines in Mexico and the United States.
Previous report
For the three months ended October 31, 2024, cost of sales were $449 million, an increase of $12 million, or 3%, driven by unfavorable cost/mix (timing of input cost fluctuations coupled with high inventory levels), higher volumes, and the negative effect of foreign exchange, partially offset by the positive effect of the acquisitions and divestitures along with the impact of JDCC.
Previous report
For the six months ended October 31, 2024, cost of sales were $835 million, an increase of $12 million, or 1%, driven by unfavorable cost/mix (timing of input cost fluctuations coupled with high inventory levels), largely offset by the positive effect of the acquisitions and divestitures, the impact of JDCC, and lower volumes.
Previous report
1“Franchise tax refund” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
Previous report
For the three months ended October 31, 2024, operating income totaled $341 million, an increase of $2 million, or 1%, compared to the same period last year. Operating margin increased 0.5 percentage points to 31.1% from 30.6% in the same period last year driven by operating expense leverage and favorable price/mix, partially offset by the timing of input cost fluctuations coupled with high inventory level and the negative effect of the acquisitions and divestitures.
Previous report
We anticipate a return to growth for organic net sales and organic operating income in fiscal 2025 driven by gains in international markets and the benefit of normalizing inventory trends. This outlook is tempered by our belief that global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment. Accordingly, we reiterate the following expectations for fiscal 2025:
Previous report
•An effective tax rate to be in the range of approximately 21% to 23%.
Previous report
The estimated capital expenditure range has been updated to $180 to $190 million from $195 to $205 million.
Reworded paragraphs (58)
Previous wording
You should read the following discussion and analysis in conjunction with both our unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item 1 of this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (2024 Form 10-K). Note that the results of operations for the six months ended October 31, 2024, are not necessarily indicative of future or annual results. In this Item, “we,” “us,” “our,” “Brown-Forman,” and the “Company” refer to Brown-Forman Corporation and its consolidated subsidiaries, collectively.
Current wording
You should read the following discussion and analysis in conjunction with both our unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item 1 of this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (2024 Form 10-K). Note that the results of operations for the nine months ended January 31, 2025, are not necessarily indicative of future or annual results. In this Item, “we,” “us,” “our,” “Brown-Forman,” and the “Company” refer to Brown-Forman Corporation and its consolidated subsidiaries, collectively.
Previous wording
During fiscal 2024, we sold our Finlandia vodka business, which resulted in a pre-tax gain of $92 million, and entered into a related transition services agreement (TSA) for this business. This adjustment removes the (a) transaction costs related to the divestiture, (b) operating activity for the non-comparable period, which is activity in the first and second quarters of fiscal 2024, and (c) net sales, cost of sales, and operating expenses 1 recognized pursuant to the TSA related to distribution services in certain markets.
Current wording
During fiscal 2024, we sold our Finlandia vodka business, which resulted in a pre-tax gain of $92 million, and entered into a related transition services agreement (TSA) for this business. This adjustment removes the (a) transaction costs related to the divestiture, (b) the gain on sale of the Finlandia vodka business, (c) operating activity for the non-comparable period, which is activity in the first and second quarters of fiscal 2024, and (d) net sales, cost of sales, and operating expenses recognized pursuant to the TSA related to distribution services in certain markets.
Previous wording
During fiscal 2024, we sold the Sonoma-Cutrer wine business in exchange for an ownership percentage of 21.4% in The Duckhorn Portfolio Inc. (Duckhorn) along with $50 million cash and entered into a related TSA for this business. This transaction resulted in a pre-tax gain of $175 million. This adjustment removes the (a) transaction costs related to the divestiture, (b) operating activity for the non-comparable period, which is activity in the first and second quarters of fiscal 2024, and (c) net sales, cost of sales, and operating expenses 1 recognized pursuant to the TSA related to distribution services in certain markets.
Current wording
During fiscal 2024, we sold the Sonoma-Cutrer wine business in exchange for an ownership percentage of 21.4% in The Duckhorn Portfolio Inc. (Duckhorn) along with $50 million cash and entered into a related TSA for this business. This transaction resulted in a pre-tax gain of $175 million. This adjustment removes the (a) transaction costs related to the divestiture, (b) operating activity for the non-comparable period, which is activity in the first, second, and third quarters of fiscal 2024, and (c) net sales, cost of sales, and operating expenses recognized pursuant to the TSA related to distribution services in certain markets.
Previous wording
the non-comparable operating activity related to the sales of Brown-Forman-produced Jack Daniel’s Country Cocktails products for the first and second quarters of fiscal 2024 and fiscal 2025.
Current wording
the non-comparable operating activity related to the sales of Brown-Forman-produced Jack Daniel’s Country Cocktails products for the first, second, and third quarters of fiscal 2024 and fiscal 2025.
Previous wording
•“Rest of Portfolio” includes Sonoma-Cutrer(which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka(which was divested on November 1, 2023), Fords Gin, Korbel Brandy, and other agency brands.
Current wording
•“Rest of Portfolio” includes Sonoma-Cutrer (which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka (which was divested on November 1, 2023), Fords Gin, Korbel Brandy, and other agency brands (brands we do not own, but sell in certain markets).
Previous wording
This report contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. These risks and uncertainties include, but are not limited to:
Current wording
This report contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:
Previous wording
•Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; protectionist trade policies, or economic or trade sanctions, including additional retaliatory tariffs on American whiskeys and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and distributors; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics
Current wording
•Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics
Previous wording
•Fluctuations in foreign currency exchange rates, particularly a stronger U.S. dollar
Current wording
•Fluctuations in foreign currency exchange rates, particularly due to a stronger U.S. dollar
Previous wording
During the third quarter of fiscal 2024, we sold the Finlandia vodka business for $196 million cash and entered into a TSA for this business. The absence of the brand negatively impacted our net sales and operating income for the six months and three months ended October 31, 2024. The TSA for this divestiture negatively impacted our gross margin for the six months and three months ended October 31, 2024.
Current wording
During the third quarter of fiscal 2024, we sold the Finlandia vodka business for $196 million cash and entered into a TSA for this business. The absence of the brand negatively impacted our net sales and operating income for the three months and nine months ended January 31, 2025. Gross margin was positively impacted for the three months and nine months ended January 31, 2025.
Previous wording
During the fourth quarter of fiscal 2024, we sold the Sonoma-Cutrer wine business in exchange for an ownership percentage of 21.4% in Duckhorn along with $50 million cash and entered into a TSA for this business. The absence of the brand negatively impacted our net sales and operating income for the six months and three months ended October 31, 2024. The TSA for this divestiture negatively impacted our gross margin for the six months and three months ended October 31, 2024. On October 6, 2024, Duckhorn entered into a definitive agreement pursuant to which Duckhorn will be acquired by private equity funds. See Note 5 to the Condensed Consolidated Financial Statements for more information.
Current wording
During the fourth quarter of fiscal 2024, we sold the Sonoma-Cutrer wine business in exchange for an ownership percentage of 21.4% in Duckhorn along with $50 million cash and entered into a TSA for this business. The absence of the brand negatively impacted our net sales and operating income for the three months and nine months ended January 31, 2025. Gross margin was positively impacted for the three months ended January 31, 2025 and negatively impacted for the nine months ended January 31, 2025. On December 24, 2024, Duckhorn was acquired by Butterfly Equity and we recognized a $78 million gain on the sale of our investment in Duckhorn during the three months ended January 31, 2025. See Note 5 to the Condensed Consolidated Financial Statements for more information.
Previous wording
•We delivered net sales of $2.0 billion for the six months ended October 31, 2024, a decrease of 5%. The decrease was driven by (a) the negative effect of acquisitions and divestitures; (b) lower volumes; (c) the negative effect of foreign exchange; and (d) the impact of JDCC, partially offset by favorable price/mix.
Current wording
•We delivered net sales of $3.1 billion for the nine months ended January 31, 2025, a decrease of 4%. The decrease was driven by (a) the negative effect of acquisitions and divestitures; (b) the negative effect of foreign exchange; and (c) the impact of JDCC. The decrease was partially offset by higher volumes.
Previous wording
◦From a brand perspective, net sales declines were led by the Finlandia and Sonoma-Cutrer divestitures, the impact of JDCC, and our Tequila portfolio, partially offset by growth of the non-branded and bulk business (primarily used barrel sales) and Woodford Reserve.
Current wording
◦From a brand perspective, net sales declines were led by the Finlandia and Sonoma-Cutrer divestitures, our Tequila portfolio, and the impact of JDCC, partially offset by growth of Woodford Reserve and the non-branded and bulk business (primarily used barrel sales).
Previous wording
◦From a geographic perspective, the declines in net sales were across geographic aggregations.
Current wording
◦From a geographic perspective, net sales declined across geographic aggregations.
Previous wording
•We delivered operating income of $622 million for the six months ended October 31, 2024, a decrease of 7% largely driven by the timing of input cost fluctuations coupled with high inventory levels, the negative effect of the acquisitions and divestitures, and the negative effect of foreign exchange. The decrease was partially offset by (a) favorable price/mix; (b) advertising and SG&A expense leverage; (c) the franchise tax refund; and (d) the gain on sale of the Alabama cooperage.
Current wording
•We delivered operating income of $902 million for the nine months ended January 31, 2025, a decrease of 13%, largely driven by (a) higher costs, (b) the absence of the gain on sale of the Finlandia vodka business; (c) the negative effect of foreign exchange; and (d) restructuring and other costs. The decrease was partially offset by (a) lower SG&A and advertising expenses; (b) favorable price/mix; (c) the franchise tax refund; and (d) the gain on sale of the Alabama cooperage.
Previous wording
•We delivered diluted earnings per share of $0.96 for the six months ended October 31, 2024, a decrease of 3% from the $0.98 reported for the same period last year, driven primarily by the decrease in operating income, partially offset by the benefit of the lower effective tax rate.
Current wording
•We delivered diluted earnings per share of $1.53 for the nine months ended January 31, 2025, a decrease of 4% from the $1.58 reported for the same period last year, driven primarily by the decrease in operating income, partially offset by the gain on sale of our investment in Duckhorn and the benefit of the lower effective tax rate.
Previous wording
The following table provides supplemental information for our largest markets. We discuss results of the markets most affecting our performance below the table. Unless otherwise indicated, all related commentary is on a reported basis and is for the six months ended October 31, 2024 compared to the same period last year.
Current wording
The following table provides supplemental information for our largest markets. We discuss results of the markets most affecting our performance below the table. Unless otherwise indicated, all related commentary is on a reported basis and is for the nine months ended January 31, 2025 compared to the same period last year.
Previous wording
The United States’ net sales declined 7% driven by lower volumes, led by JDTW and Korbel California Champagnes, along with the divestiture of Sonoma-Cutrer and the impact of JDCC. The declines were partially offset by higher volumes of Woodford Reserve and Old Forester. An estimated net increase in distributor inventories positively impacted net sales.
Current wording
The United States’ net sales declined 5% driven by (a) the divestiture of Sonoma-Cutrer; (b) lower volumes of Korbel California Champagnes, JDTW, and el Jimador; and (c) the impact of JDCC. The decline was partially offset by higher volumes and favorable price/mix of Woodford Reserve. An estimated net increase in distributor inventories positively impacted net sales.
Previous wording
•Germany’s net sales declined 2% driven by lower volumes of JDTW and JD RTDs, partially offset by the positive contribution from Diplomático and the positive effect of foreign exchange.
Current wording
•Germany’s net sales declined 6% driven by lower volumes of JDTW and JD RTDs, as well as the negative effect of foreign exchange. The decline was partially offset by positive contribution from Diplomático.
Previous wording
•The United Kingdom’s net sales declined 8% led by lower volumes of JDTW, partially offset by the positive effect of foreign exchange.
Current wording
•The United Kingdom’s net sales declined 5% led by lower volumes of the American whiskey portfolio.
Previous wording
•France’s net sales decreased 2% driven by declines across our Jack Daniel’s family of brands, partially offset by the positive contribution from Diplomático and the positive effect of foreign exchange.
Current wording
•France’s net sales decreased 3% led by declines across the Jack Daniel’s family of brands and the negative effect of foreign exchange, partially offset by positive contribution from Diplomático.
Previous wording
•Canada’s net sales declined 2% driven by the divestitures of Finlandia and Sonoma-Cutrer, as well as the negative effect of foreign exchange. The declines were partially offset by growth of JD RTDs.
Current wording
•Canada’s net sales declined 6% driven by the divestitures of Finlandia and Sonoma-Cutrer, as well as the negative effect of foreign exchange. The decline was partially offset by growth of JD RTDs.
Previous wording
•Spain’snet sales declined 12% led by lower volumes of JDTW, partially offset by the positive contribution from Diplomático.
Current wording
•Spain’snet sales declined 9% driven by lower volumes of JDTW, partially offset by positive contributions from Diplomático and Gin Mare.
Previous wording
•Net sales in the Rest of Developed International decreased 7% driven by the divestiture of Finlandia, declines of Glenglassaugh due to the absence of the high-value cask sales in the same prior-year period, and lower volumes of JDTW in South Korea. The declines were partially offset by higher JDTW volumes in Japan primarily due to changes in distributor ordering patterns in the same prior-year period (we transitioned to owned distribution in Japan on April 1, 2024).
Current wording
•Net sales in the Rest of Developed International declined 6% driven by (a) the divestiture of Finlandia; (b) declines of the Jack Daniel’s family of brands in South Korea; (c) the absence of Glenglassaugh high-value cask sales as compared to the same prior-year period; and (d) lower volumes of The Glendronach in Taiwan. The decline was partially offset by higher volumes across our portfolio in Japan, led by JDTW, primarily due to changes in distributor ordering patterns as compared to the same prior-year period (transitioned to owned distribution in Japan on April 1, 2024).
Previous wording
•Mexico’s net sales declined 11% driven by lower volumes of our Tequila portfolio and the negative effect of foreign exchange, partially offset by growth of New Mix.
Current wording
•Mexico’s net sales declined 9% driven by lower volumes of the Tequila portfolio and the negative effect of foreign exchange. The decline was partially offset by growth of New Mix, the distribution of new agency brands, and higher volumes of JD RTDs.
Previous wording
•Brazil’s net sales increased 31% driven by higher volumes across the portfolio, led by JDTW, JDTA, and JDTH. The growth was partially offset by the negative effect of foreign exchange.
Current wording
•Brazil’s net sales increased 6% led by higher volumes of JDTW and JDTA, partially offset by the negative effect of foreign exchange.
Previous wording
•Net sales in the Rest of Emerging declined 3% driven by the divestiture of Finlandia, the negative effect of foreign exchange (reflecting the strengthening of the dollar primarily against the Turkish lira), and lower volumes across the Jack Daniel’s family of brands in Chile. These declines were partially offset by higher prices of JDTW in Türkiye and volumetric growth of JDTW in Sub-Saharan Africa, reflecting an estimated net increase in distributor inventories.
Current wording
•Net sales in the Rest of Emerging were flat as higher prices of JDTW in Türkiye and volumetric growth of JDTW in the United Arab Emirates and Sub-Saharan Africa were offset by (a) the divestiture of Finlandia; (b) the negative effect of foreign exchange (reflecting the strengthening of the dollar primarily against the Turkish lira); and (c) and lower volumes across the Jack Daniel’s family of brands in Chile. An estimated net increase in distributor inventories positively impacted net sales.
Previous wording
Travel Retail’snet sales declined 5% led by lower volumes of the other super-premium Jack Daniel’s expressions and Woodford Reserve, as well as the divestiture of Finlandia. The declines were partially offset by growth of JDTW and Diplomático.
Current wording
Travel Retail’snet sales declined 5% driven by lower volumes of the other super-premium Jack Daniel’s expressions, the divestiture of Finlandia, and the negative effect of foreign exchange. The decline was partially offset by growth of Diplomático.
Previous wording
Non-branded and bulk’snet sales increased 39% driven by higher prices for used barrels.
Current wording
Non-branded and bulk’snet sales increased 38% driven by higher prices for used barrels.
Previous wording
The following table provides supplemental information for our largest brands. We discuss results of the brands most affecting our performance below the table. Unless otherwise indicated, all related commentary is on a reported basis and is for the six months ended October 31, 2024 compared to the same period last year.
Current wording
The following table provides supplemental information for our largest brands. We discuss results of the brands most affecting our performance below the table. Unless otherwise indicated, all related commentary is on a reported basis and is for the nine months ended January 31, 2025 compared to the same period last year.
Previous wording
•Net sales for JDTW declined 1% driven by lower volumes, led by the United States, the United Kingdom and South Korea. The declines were partially offset by higher volumes in Japan following the transition to owned-distribution and higher prices in Türkiye in response to high inflation and currency devaluation. An estimated net increase in distributor inventories positively impacted net sales.
Current wording
•Net sales for JDTW increased 1% driven by higher volumes in Japan following the transition to owned-distribution and higher prices in Türkiye in response to high inflation and currency devaluation. The growth was partially offset by lower volumes in the United States. An estimated net increase in distributor inventories positively impacted net sales.
Previous wording
•Net sales for JDTH were flat as growth in Brazil and Türkiye was offset by declines in South Korea and the negative effect of foreign exchange. An estimated net increase in distributor inventories positively impacted net sales.
Current wording
•Net sales for Gentleman Jack increased 2% led by higher prices in Türkiye, partially offset by the negative effect of foreign exchange. An estimated net increase in distributor inventories positively impacted net sales.
Previous wording
•Net sales for JDTA decreased 2% driven by declines in South Korea following the continued product launch in the same prior-year period, along with the negative effect of foreign exchange. These declines were partially offset by higher volumes in Brazil.
Current wording
•Net sales for JDTA decreased 4% driven by South Korea and the negative effect of foreign exchange, partially offset by higher volumes in Brazil and higher prices in Türkiye.
Previous wording
•Woodford Reserve’snet sales increased 8% driven by higher volumes in the United States, primarily due to an estimated net increase in distributor inventories. The increase was partially offset by lower volumes in Travel Retail.
Current wording
•Woodford Reserve’snet sales increased 10% driven by higher volumes, partially reflecting an estimated net increase in distributor inventories, and favorable price/mix in the United States.
Previous wording
•Old Forester’s net sales increased 11% driven by favorable product mix in the United States.
Current wording
•Old Forester’s net sales increased 12% driven by favorable product mix in the United States.
Previous wording
•Net sales for Rest of Whiskey declined 22% driven by lower volumes of the other super-premium Jack Daniel's expressions and The Glendronach, as well as declines of Glenglassaugh due to the absence of the high-value cask sales as compared to the same prior-year period.
Current wording
•Net sales for Rest of Whiskey decreased 21% driven by the other super-premium Jack Daniel's expressions and The Glendronach, as well as the absence of Glenglassaugh high-value cask sales as compared to the same prior-year period.
Previous wording
•Net sales for the JD RTD/RTPbrands decreased 8% led by the impact of JDCC and declines in Australia, partially offset by growth in the United States reflecting an estimated net increase in distributor inventories.
Current wording
•Net sales for the JD RTD/RTPbrands declined 7% driven by the impact of JDCC, the negative effect of foreign exchange, and lower volumes in Germany. The decline was partially offset by growth of Jack Daniel’s bulk whiskey shipments for the production of Jack Daniel’s & Coca-Cola RTD products along with higher volumes in the United States reflecting an estimated net increase in distributor inventories.
Previous wording
•el Jimador’snet sales declined 16% driven by lower volumes in the United States, Mexico, and Colombia. The declines were partially offset by higher prices in the United States.
Current wording
•el Jimador’snet sales declined 13% driven by lower volumes in the United States and Mexico, partially offset by higher prices in the United States.
Previous wording
Net sales for Rest of Portfolio declined 26% driven by the divestitures of Finlandia and Sonoma-Cutrer and lower volumes of Korbel California Champagnes in the United States. The declines were partially offset by the positive contribution from Diplomático. An estimated net increase in distributor inventories positively impacted net sales.
Current wording
Net sales for Rest of Portfolio declined 31% driven by the divestitures of Finlandia and Sonoma-Cutrer. Positive contributions from Diplomático and Gin Mare were offset by lower volumes of Korbel California Champagnes in the United States. An estimated net increase in distributor inventories positively impacted net sales.
Previous wording
Non-branded and bulk’snet sales increased 39% driven by higher prices for used barrels.
Current wording
Non-branded and bulk’snet sales increased 38% driven by higher prices for used barrels.
Previous wording
For the three months ended October 31, 2024, net sales were $1.1 billion, a decrease of $13 million, or 1%, driven by the negative effect of acquisitions and divestitures and the impact of JDCC, partially offset by higher volumes, led by New Mix and JDTW. Price/mix reflects an unfavorable portfolio mix shift offset by growth of the non-branded and bulk business (primarily used barrel sales).
Current wording
For the three months ended January 31, 2025, net sales were $1.0 billion, a decrease of $33 million, or 3%, driven by (a) the negative effect of acquisitions and divestitures; (b) the negative effect of foreign exchange; (c) unfavorable price/mix; and (d) the impact of JDCC, partially offset by higher volumes. Higher volumes were led by New Mix, JDTW, and JD RTDs. Price/mix primarily reflects a portfolio mix shift to our lower priced brands.
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•Risks from changes to the trade policies, tariff and import and export regulations by the U.S. or foreign governments and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and/or distributors
Current report — wording carried from elsewhere
1“Other items” includes “restructuring and other charges” and “franchise tax refund”. See “Non-GAAP Financial Measures” above for additional details.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•Net sales for Gentleman Jack increased 1% driven by higher prices in Türkiye, partially offset by lower volumes in the United States.
Previous report — wording carried elsewhere
•Advertising expense decreased 9% for the three months ended October 31, 2024 driven by lower JDTW spend and the impact of our recently divested brands.