Brown Forman A (BF5A) Q1 2027 Earnings Report
DE:BF5A Q1 2027 EPS Results
- Actual EPS
- EUR 0.33
- Consensus EPS
- EUR 0.32
- Beat/Miss
- Beat by +EUR 0.01
- One Year Ago EPS
- EUR 0.31
DE:BF5A Q1 2027 Revenue Results
- Actual Revenue
- EUR 785.22M
- Expected Revenue
- EUR 786.27M
- Beat/Miss
- Missed by -EUR 1.06M
- YoY Revenue Growth
- -1.19%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 09/02/2026
- Time
- Before Open
- Conference Call
- Wednesday, September 2, 2026
DE:BF5A Upcoming Earnings
Brown Forman A's next earnings date is estimated for December 9, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
DE:BF5A Q1 2027 Earnings Call
0:00 / 0:00
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was positive overall. Management reported results largely in line with expectations, reaffirmed fiscal 2027 guidance, cited strong innovation and RTD momentum, delivered organic operating income and EPS growth, and generated higher operating and free cash flow. These strengths were partially offset by flat expected full-year organic net sales, declines in used barrels and tequila, weak developed-market demand, anticipated gross-margin and input-cost pressure, and ongoing category challenges.
Company Guidance
Brown-Forman reaffirmed its fiscal 2027 guidance, continuing to expect organic net sales to be approximately flat for fiscal 2027, organic operating income to decline between 3% and 5%, with results expected to trend toward the more favorable end of the range, capital expenditures to be in the range of $60 million to $70 million, and an effective tax rate of approximately 20%-22% for fiscal 2027; the company expects the gap between shipments and depletions to narrow as the year progresses, with depletions exceeding shipments for the full fiscal year, continued pressure on used barrel sales but expects the impact to moderate through the remainder of the year and the year-over-year dollar impact on net sales will be significantly less, and continues to assume U.S.-produced spirits restrictions in Canada will remain in place for the balance of the fiscal year.
- First Quarter Results in Line with ExpectationsManagement said fiscal 2027 first-quarter performance unfolded largely as expected, supported the full-year outlook, and led the company to reaffirm its fiscal 2027 guidance.
- Innovation and RTD Portfolio Driving GrowthInnovation, particularly New Mix, the broader ready-to-drink portfolio, and Jack Daniel's Tennessee Blackberry, created meaningful growth opportunities and helped offset pressure in used barrel sales, parts of tequila, and softer demand in developed markets.
- New Mix Momentum and ExpansionNew Mix delivered strong double-digit growth in Mexico, exceeded U.S. demand expectations since launch, and was being expanded into additional markets with new flavors and pack options. In the U.S., it was available in nine states and had become the eighth-largest contributor to the RTD category in Nielsen.
- RTD Portfolio Contributed to U.S. Value GrowthBased on recent Nielsen data, the RTD portfolio contributed approximately 1 point of value growth to overall U.S. performance. Management said the RTD category remained a significant contributor to the U.S. spirits market, with the broader category down between 0.5 and 1 point on a depletion basis while the category excluding RTDs was down more like mid-single digits.
- Jack Daniel's Tennessee Blackberry ExpansionTennessee Blackberry was described as one of the most successful innovations in the portfolio. It was available in more than 30 international markets, showed particularly strong growth in Brazil, France, and the United Arab Emirates, and contributed more than 2 points of U.S. value growth based on Nielsen takeaway trends.
- Blackberry Innovation Across Pack Sizes and FormatsThe company continued investing in Tennessee Blackberry, broadening distribution, introducing new pack sizes, and extending the trademark through Jack Daniel's Tennessee Blackberry and Lemonade in an RTD format. Management said the launch was designed as a two-year plan and identified further opportunities in flavor-oriented markets including the U.K., Czech Republic, Australia, and Brazil.
- Jack Daniel's Tennessee Whiskey Provided StabilityOrganic net sales for Jack Daniel's Tennessee Whiskey were essentially flat in the quarter, providing an important source of stability and continuing to serve as the foundation of the portfolio.
- U.S. Performance Held Up Against Market PressureU.S. organic net sales were flat despite a decline in the overall spirits market, with growth from Jack Daniel's Tennessee Whiskey, the RTD portfolio, and premium innovations such as Jack Daniel's Single Barrel Heritage Barrel helping offset broader market pressures.
- Emerging International Markets Grew 9%Emerging international markets delivered 9% organic net sales growth, led by Mexico and the United Arab Emirates. New Mix drove strong growth in Mexico, while the UAE benefited from shipment timing.
- Australia Growth and RTD InnovationAustralia grew organic net sales 4% despite a challenging market environment. Growth was led by Jack Daniel's Tennessee Whiskey, supported by RTD innovation including Jack Daniel's Tennessee Serve, a 12% ABV whiskey-and-cola RTD created exclusively for Australia.
- European Whiskey Share Remained ResilientAlthough consumer demand was soft across Europe, Brown-Forman's whiskey category share remained stable or increased in five of its eight largest European markets.
- Gross Margin Expansion in the QuarterGross margin expanded 40 basis points to 60.2%, primarily due to lower costs driven by timing and favorable portfolio changes, partially offset by foreign exchange and product mix.
- Organic Operating Income and EPS GrowthOrganic operating income increased 4%, while reported operating income declined 3%. Earnings per share increased 6% to $0.38, supported by improved organic operating performance, lower non-operating post-retirement expense, and the benefit of prior-year share repurchases.
- Strong Operating and Free Cash FlowCash flow from operations increased $13 million to $173 million, and free cash flow increased $32 million to $161 million. The improvement reflected solid operating cash generation and lower capital spending requirements.
- Debt Repayment and Financial PositionThe company repaid the EUR 300 million principal amount of its 1.2% senior notes on the July 7, 2026 maturity date. Management also cited a strong balance sheet and healthy free cash flows.
- Confidence in the Favorable End of Operating Income GuidanceManagement increased its confidence that fiscal 2027 organic operating income would trend toward the more favorable end of the 3% to 5% decline range, citing stronger-than-expected benefits from cost actions, pricing, and other efficiencies.
- Capital Expenditure and Tax Rate OutlookThe company continued to expect capital expenditures of $60 million to $70 million, significantly lower than recent years, and an effective tax rate of approximately 20%-22% for fiscal 2027.
- Working Capital and Inventory ActionsBrown-Forman remained focused on reducing finished goods inventory and improving working capital efficiency, which management said should further support cash generation.
- Woodford Reserve Remained a Strong BrandManagement said Woodford Reserve was one of the strongest brands in the portfolio, had continued to grow in the U.S. despite a difficult environment, and offered further U.S. distribution and international growth opportunities.
- Premium Whiskey and Heritage Barrel MomentumJack Daniel's Single Barrel Heritage Barrel was described as a significant success. Management said the brand's premium expressions had been very successful, demonstrating that Jack Daniel's could perform across multiple price points and product segments.
- Whiskey Pricing Remained RationalJack Daniel's U.S. whiskey pricing increased 1%, while the U.S. whiskey category declined 0.6%. Management characterized the pricing environment as rational and said the company would accept 1% price increases on Black Label in the current market.
- Tequila Trend Improvement at el JimadorAlthough the full-strength tequila portfolio remained under pressure, el Jimador improved from down 8% a year earlier to down 5%. Within the $15-$30 or $20-$30 tequila price point, el Jimador improved from the number nine brand to the number four brand.
- Reduced Whiskey Industry ProductionIndustry new fills declined 30% in calendar 2025, and management said it expected another decline of at least 30% in the current year. Brown-Forman also said it had managed inventory efficiently and did not believe its inventory levels were as high as those of many competitors.
- Standalone Strategy and Capital AllocationFollowing the end of discussions with Pernod Ricard, management said Brown-Forman would focus on expanding its geographic footprint, building brands, enhancing operational efficiencies, investing in the business, paying increasing regular dividends, pursuing strategic opportunities when available, and returning cash to shareholders.
- Employee Execution During a Challenging EnvironmentManagement recognized employees for remaining focused on execution, supporting one another, and advancing the company's strategic priorities despite the challenging operating environment.
DE:BF5A Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Dec 09, 2026 | 2027 (Q2) | 0.40- | 0.4 | ― | ― |
| Sep 02, 2026 | 2027 (Q1) | 0.320.33 | 0.31 | 5.56% (+0.02) | |
| Jun 04, 2026 | 2026 (Q4) | 0.260.10 | 0.27 | -61.29% (-0.16) | |
| Mar 04, 2026 | 2026 (Q3) | 0.400.50 | 0.49 | 1.75% (+0.01) | |
| Dec 04, 2025 | 2026 (Q2) | 0.410.40 | 0.47 | -14.55% (-0.07) | |
| Aug 28, 2025 | 2026 (Q1) | 0.310.31 | 0.35 | -12.20% (-0.04) | |
| Jun 05, 2025 | 2025 (Q4) | 0.290.27 | 0.48 | -44.64% (-0.21) | |
| Mar 05, 2025 | 2025 (Q3) | 0.400.49 | 0.52 | -5.00% (-0.03) | |
| Dec 05, 2024 | 2025 (Q2) | 0.420.47 | 0.43 | 10.00% (+0.04) | |
| Aug 29, 2024 | 2025 (Q1) | 0.390.35 | 0.41 | -14.58% (-0.06) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed