LOUISVILLE, KY — Brown‑Forman Corporation (NYSE: BFA, BFB) reported financial results for its third quarter and nine months ended January 31, 2025. Third quarter reported net sales decreased 3%¹ to $1.0 billion (+6% on an organic basis²) compared to the same prior-year period. Third quarter reported operating income decreased 25% to $280 million (+23% on an organic basis) and diluted earnings per share decreased 5% to $0.57.

For the nine months of the fiscal year, reported net sales decreased 4% to $3.1 billion (+2% on an organic basis) compared to the same prior-year period. Year-to-date reported operating income decreased 13% to $902 million (+5% on an organic basis) and diluted earnings per share decreased 4% to $1.53.

“We are pleased to reaffirm our outlook for organic top and bottom line growth in fiscal 2025 and are proud of our team’s ability to deliver industry-leading growth in this challenging environment,” said Lawson Whiting, Brown‑Forman’s President and Chief Executive Officer. “While we anticipate continued uncertainty and headwinds in the external environment, we are also confident that we have the right people, brands, and strategy in place to take advantage of ongoing growth opportunities.”

Year-to-Date Fiscal 2025 Highlights

• Net sales declines were largely driven by the Finlandia and Sonoma‑Cutrer divestitures.

• Net sales declined across all geographic aggregations with sequential improvement in the United States and Developed International³ markets.

• Gross profit declined 6% (-1% organic). Gross margin contracted 150 basis points largely driven by higher costs and the negative effect of foreign exchange, partially offset by favorable price/mix.

• Operating expenses declined by 8% (-6% organic).

• Recognized a $78 million gain on the sale of our investment in The Duckhorn Portfolio, Inc. (“Duckhorn”); diluted earnings per share impact of $0.14.

Year-to-Date Fiscal 2025 Brand Results

• Net sales for Whiskey³ products were flat (+2% organic) reflecting sequential improvement. Growth from Woodford Reserve and Jack Daniel’s Tennessee Whiskey was offset by the negative effect of foreign exchange and declines of other super-premium Jack Daniel’s expressions. These expressions include Jack Daniel’s Single Barrel and various other Jack Daniel’s special releases, which declined following a strong prior-year comparison partially due to a number of product launches. An estimated net increase in distributor inventories positively impacted net sales.

• Net sales for the Tequila³ portfolio declined 15% (-13% organic) impacted by a competitive environment in the United States along with challenging macroeconomic conditions in Mexico. el Jimador’s net sales declined 13% (-11% organic) driven by lower volumes in the United States and Mexico, partially offset by higher prices in the United States. Herradura’s net sales declined 13% (-11% organic) led by lower volumes in Mexico.   

• Net sales for the Ready-to-Drink³ (RTD) portfolio declined 4% (+6% organic). Jack Daniel’s RTD/RTP portfolio declined 7% (+3% organic) driven by the Jack Daniel’s Country Cocktails business model change (JDCC)². Building on strong double-digit growth in the same prior-year period, net sales of New Mix increased 2% (+13% organic) driven by higher volumes in Mexico, partially offset by the negative effect of foreign exchange.

• Rest of Portfolio's³ net sales declined 31% (flat organic) driven by the Finlandia and Sonoma‑Cutrer divestitures and lower volumes of Korbel California Champagnes in the United States. The decline was partially offset by the positive contributions from Diplomático and Gin Mare. An estimated net increase in distributor inventories positively impacted net sales.

Year-to-Date Fiscal 2025 Market Results                               

• Net sales in the United States improved sequentially with a decline of 5% (-1% organic) led by the divestiture of Sonoma‑Cutrer, lower volumes of Korbel California Champagnes and Jack Daniel’s Tennessee Whiskey, and the impact of JDCC. The declines were partially offset by growth of Woodford Reserve as the brand continued to outperform the US Whiskey category. An estimated net increase in distributor inventories positively impacted net sales.

• Industry trends remained soft in the Developed International³ markets as net sales declined 5% (-1% organic), though improved sequentially. The decrease was led by the absence of the Finlandia brand, the negative effect of foreign exchange, and lower volumes in South Korea, Germany, and the United Kingdom. The decline was partially offset by higher volumes of Jack Daniel’s Tennessee Whiskey in Japan, due to changes in distributor ordering patterns in the same prior-year period, and the positive contribution of Diplomático.

• Lapping double-digit growth in the prior-year period, net sales in Emerging³ markets declined 4% (+8% organic). The decrease was largely driven by the Finlandia divestiture, the negative effect of foreign exchange, and declines of the Tequila portfolio in Mexico. The decline was partially offset by growth of the Jack Daniel’s family of brands in Türkiye, Brazil, and the United Arab Emirates, and higher volumes of New Mix.

• The Travel Retail channel’s net sales declined 5% (-2% organic) led by lower volumes of the other super-premium Jack Daniel’s expressions and the divestiture of Finlandia, partially offset by growth of Diplomático.

Year-to-Date Fiscal 2025 Other P&L Items

• Gross profit decreased 6% (-1% organic) primarily due to the absence of divested brands and the negative effect of foreign exchange. Gross margin contracted 150 basis points to 59.4% largely driven by higher costs and the negative effect of foreign exchange, partially offset by favorable price/mix.

• Advertising expense decreased 9% (-6% organic) driven by timing of lower Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Apple spend, the phasing of spend in the prior-year period in support of the launch of Jack Daniel’s and Coca-Cola RTD in the United States, and the impact of our recently divested brands.

• Selling, general, and administrative (SG&A) expenses decreased 7% (-4% organic) led by lower compensation and benefit related expenses.

• The company incurred $33 million of restructuring and other charges related to the company's workforce reduction, the announced closure of the Louisville-based Brown‑Forman Cooperage, and the early retirement benefit offered to qualifying U.S. employees.

• Operating income declined 13% (+5% organic) with an operating margin decrease of 300 basis points to 29.3%. The decrease was primarily due to the decline in gross margin, the absence of the gain on sale of the Finlandia vodka business, and restructuring and other charges, partially offset by lower SG&A and advertising expenses.

• On December 24, 2024, Duckhorn was acquired by Butterfly Equity, and Brown‑Forman recognized a $78 million gain on the sale of our 21.4% ownership of the company. The impact on the diluted earnings per share was $0.14.

• Diluted earnings per share decreased $0.06 driven primarily by the decrease in operating income, partially offset by the gain on sale of our investment in Duckhorn and the benefit of a lower effective tax rate.

Year-to-Date Fiscal 2025 Financial Stewardship

On February 20, 2025, the Brown‑Forman Board of Directors declared a regular quarterly cash dividend of $0.2265 per share on its Class A and Class B Common Stock. The dividend is payable on April 1, 2025, to stockholders of record on March 7, 2025. Brown‑Forman, a member of the prestigious S&P 500 Dividend Aristocrats Index, has paid regular quarterly cash dividends for 81 consecutive years and has increased the regular dividend for 41 consecutive years.

Fiscal 2025 Outlook

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:

• Organic net sales growth in the 2% to 4% range.

• Organic operating income growth in the 2% to 4% range.

• Capital expenditures planned to be in the range of $180 to $190 million.

The forecasted effective tax rate range has been updated to approximately 20% to 22% from 21% to 23%.

​Click here for the full financial results.

Conference Call Details

Brown‑Forman will host a conference call to discuss these results at 10:00 a.m. (ET) today. A live audio broadcast of the conference call, and the accompanying presentation slides, will be available via

Brown‑Forman’s website, brown-forman.com, through a link to “Investors/Events & Presentations.” A digital audio recording of the conference call and the presentation slides will also be posted on the website and will be available for at least 30 days following the conference call.

Brown‑Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries. Discover more about us at brown-forman.com and stay connected through LinkedIn, Instagram, and X.

Important Information on Forward-Looking Statements:

This press release 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:

• Our substantial dependence upon the continued growth of the Jack Daniel's family of brands

• Substantial competition from new entrants, consolidations by competitors and retailers, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks

• 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

• Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs

• Disruption of our distribution network or inventory fluctuations in our products by distributors, wholesalers, or retailers

• Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; further legalization of marijuana; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation

• Production facility, aging warehouse, or supply chain disruption

• Imprecision in supply/demand forecasting

• Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, or labor

• Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value

• Impact of health epidemics and pandemics, and the risk of the resulting negative economic impacts and related governmental actions

• Unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations

• Product recalls or other product liability claims, product tampering, contamination, or quality issues

• Negative publicity related to our company, products, brands, marketing, executive leadership, employees, Board of Directors, family stockholders, operations, business performance, or prospects

• Failure to attract or retain key executive or employee talent

• 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

• Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations

• Fluctuations in foreign currency exchange rates, particularly due to a stronger U.S. dollar

• Changes in laws, regulatory measures, or governmental policies, especially those affecting production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products

• Tax rate changes (including excise, corporate, sales or value-added taxes, property taxes, payroll taxes, import and export duties, and tariffs) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur

• Decline in the social acceptability of beverage alcohol in significant markets

• Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products

• Counterfeiting and inadequate protection of our intellectual property rights

• Significant legal disputes and proceedings, or government investigations

• Cyber breach or failure or corruption of our key information technology systems or those of our suppliers, customers, or direct and indirect business partners, or failure to comply with personal data protection laws

• Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure

For further information on these and other risks, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.