Brown-Forman Corp: Key Takeaways from CFO Lunch

Research evidence excerpt

Brown-Forman Corp: Key Takeaways from CFO Lunch

consumer continues to Q1E 0.37 0.37

weigh on near-term performance. While structural trends can be addressed Q2E 0.45 0.46

through portfolio evolution, cyclical headwinds remain a constraint on recovery. Q3E 0.49 0.52

Q4E 0.30 0.34

US Market Backdrop: In the US, growth is expected to remain primarily share- 04/27E 1.62 1.69

driven in the near term, with category growth likely to track at similar levels given 04/28E 1.59 1.71

the pressured consumer environment. Over time, management does see a 04/29E 1.65 1.78

pathway to stronger growth as conditions normalize and demand recovers. In the Peter Grom

interim, they highlighted a more constructive view on younger cohorts (e.g., Gen Analyst

Z), suggesting a potential longer-term demand tailwind. peter.grom@ubs.com

+1-212-713 3482

Innovation & Portfolio Strategy: Management highlighted innovation as a key

growth lever, spanning both core offerings and adjacencies (flavors, RTDs). The Sona Fernandes

focus remains on disciplined execution, prioritizing scaling successful launches Analyst

sona.fernandes@ubs.com

(e.g., JD Blackberry) before introducing incremental innovation.

+1-212-649 8050

International Expansion: International markets represent a significant Chirac Ndetan

opportunity, with increased investment behind brands and a focus on building Associate Analyst

distribution and awareness over time. Management highlighted a measured chirac.ndetan@ubs.com

rollout approach for key innovations, with upcoming international expansion (e.g., +1-212-649 7501

JD Blackberry) expected to drive incremental growth.

Pricing: The company noted that they continue to expect pricing gains on a total

Highlights (US$m) 04/24 04/25 04/26 04/27E 04/28E 04/29E 04/30E 04/31E