- Sales in three months to end of July – Q1 of fiscal 2025 – decline 4% to US$951m
- Top-line slide a repeat of previous quarter, to end of April
- Fiscal 2025 expected to deliver sales rise of between 2% and 4%
Brown-Forman remains in negative mid-single-digit range, as sales in the group’s latest quarter came in down 4%.
Following on from Q4 fiscal-2024’s 5% sales slide in June, the most recent figures represent a slow start to the current fiscal year, but are “in line with our expectations”, according to CEO Lawson Whiting. The Jack Daniel’s brand owner also noted a stronger year-prior comparison, when shipment timings factored in “the execution of our pricing strategy”.
Brands wise, the flagship Jack Daniel’s American whiskey registered another sales decrease, this time of 6%. Two of Jack’s flavour extensions, however, were up in the quarter, while the higher-end Gentleman Jack and Woodford Reserve whiskey marks delivered rises of 1% and 3%, respectively.
Over in the tequila stable, double-digit slides for both El Jimador and Herradura were blamed on lower volumes in the US and Colombia (for the former) as well as in Mexico (for both). The RTD portfolio, which includes the Jack and Coke co-branded product, was also down, by 4%.
Meanwhile, the future looks bright for premium-plus rum if Diplomático’s +134% sales showing is anything to go by. The Venezuelan brand was acquired towards the end of 2022, a move that was followed by Diageo’s purchase of Don Papa a few weeks later.
Vodka brand Finlandia no longer features in Brown-Forman’s results, following its sale to Coca-Cola HBC late last year.
Of Brown-Forman’s four reporting regions, all were down in the quarter, with the US declining 4%. “Consistent with company expectations,” the group said of the market, “distributors are continuing to target the low end of their normal inventory range as continued high inflation and interest rates are negatively impacting the consumer and the trade.” Also of note were soft volumes for Jack Daniel’s “most notably” in the UK.
The Global Travel Retail division, which has held up well in recent years, saw sales decrease 8% due in part to declining volumes of super-premium American whiskey.
““Our first quarter results were in line with our expectations and, as such, we are pleased to reaffirm our full-year fiscal 2025 guidance … ,” said Whiting. “We believe we have the right strategy, brands and geographic breadth in place to effectively manage through the challenging consumer and cost environment … .”
