Brown-Forman Profit Sinks

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published March 08, 2023
Jack Daniels bottles on a store shelf

Getty Images

Key Takeaways

  • Brown-Forman (BF.B), the maker of Jack Daniel's whiskey, announced that its profits tumbled in the fiscal third quarter of 2023.
  • The company's CFO noted the impact of higher costs for commodities, energy, and fuel.
  • Shares of Brown-Forman fell 4% on March 8, reaching their lowest level since October.

Brown-Forman (BF.B) shares declined as the maker of Jack Daniel's whiskey and other spirits reported that profit plunged in its fiscal 2023 third quarter.

Brown-Forman said earnings tumbled 61% to $0.21 per share, mainly because of a drop in operating income and a $27 million pension settlement charge. Adjusted earnings of $0.25 per share were only about half of analysts' estimates. Revenue rose 4.2% to $1.08 billion, better than anticipated. 

CFO Leanne Cunningham noted the company faced increased costs because of higher prices for commodities, energy, and fuel. She added Brown-Forman was also impacted by supply-chain disruptions that limited its ability to get products to store shelves.

2023 Outlook

Brown-Forman expects full-year organic net sales growth in the range of 8% to 10%, in line with the company's previous outlook. It said that the guidance reflects continuing strength of the portfolio of brands, strong consumer demand, and the return of inventories to more normalized levels.

Shares of Brown-Forman fell 4% on March 8 and are at their lowest level since October.

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description