Brown-Forman Corp Takeaways from Roundtable with New CFO

Research evidence excerpt

Brown-Forman Corp Takeaways from Roundtable with New CFO

J P M O R G A N North America Equity Research

23 June 2026

Brown-Forman Corp Underweight

BFb, BF/B US

Takeaways from Roundtable with New CFO Price (23 Jun 26):$27.24

Beverage, Household & Personal

We attended a sell-side roundtable discussion with recently appointed BF CFO Jim Care Products

Peters in New York. The underlying message was largely consistent with recent Drew Levine, CFA AC

commentary from F4Q26 earnings results ~three weeks ago — the operating (1-212) 622-0374

environment in Developed Markets remains challenging with no expectation for drew.levine@jpmorgan.com

material improvement/inflection in the near-term, so BF will continue to invest Andrea Teixeira, CFA

more resources into areas that are growing, such as Emerging Markets and (1-212) 622-6735

andrea.f.teixeira@jpmorgan.com

innovation. CFO Peters also sounded focused on driving cost efficiencies and

Shovana Chowdhury

instilling a culture of continuous improvement (probably less of a focus

(1-212) 270-2184

historically when industry was growing and company was generating >60% GM) shovana.chowdhury@jpmorgan.com

with a goal of driving margin improvement subsequent to high-cost inventory J.P. Morgan Securities LLC

working through the P&L, but also acknowledged the pricing environment in the

U.S. may not be supportive in the near-term.

With CFO Peters in the seat for less than three months so far and coming into the

spirits industry from consumer appliances, we suspect he is still in the process of

fully formulating his views and priorities as CFO. Net-net, we came away from the

meeting continuing to view the fundamental set-up as challenging (e.g., cost/

competitive pressures amid weak consumption environment) with a number of the