Brown-Forman (BF-B) reported Q1 EPS of $0.47, $0.05 worse than the analyst estimate of $0.52. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.05 billion.
Fiscal 2023 Outlook:
The company anticipates stronger growth in fiscal 2023 despite global macroeconomic and geopolitical uncertainties. Accordingly, we update our guidance for fiscal 2023 as follows:
Reflecting the strength of our portfolio of brands, stronger consumer demand, and the easing of supply chain constraints, we expect organic net sales growth in the high-single digit range.
The reported gross margin decline during the first half of fiscal 2023 was driven by higher inflation, supply chain disruption costs, and the negative effect of foreign exchange. For the full year, we expect reported gross margin to be consistent with the first half of fiscal 2023.
Based on the above expectations, we anticipate high-single digit organic operating income growth.
We expect our fiscal 2023 effective tax rate to be in the range of approximately 22% to 23%.
Capital expenditures are planned to be in the range of $190 to $210 million.