Brown-Forman FY sales rise as Tequila declines
Herradura owner Brown-Forman saw organic full-year revenue rise by 1% despite a decline in its fourth quarter and struggling Tequila sales.
For the year ending 30 April 2025, Brown-Forman saw its sales rise by 1% to US$4 billion (a 5% drop on a reported basis) while organic operating income increased by 3%.
During the fourth quarter, organic sales fell by 3% to US$894 million and operating income was down by 2%.
Brown-Forman said its operating environment remained challenging over the course of the year due to ‘ongoing macroeconomic and geopolitical uncertainties’ that hit consumer confidence and spending.
Brown-Forman’s Tequila portfolio struggled with a 12% decrease, due to ‘challenging macroeconomic conditions’ in Mexico and a competitive US market. El Jimador Tequila posted an 11% drop, while Herradura fell by 10%.
The group’s whiskey sales were up by 1%, with increases across all Jack Daniel’s products except Tennessee Fire (down 2%). The core Jack Daniel’s whiskey rose by 1%.
Premium Bourbon boosted whiskey sales with Woodford Reserve and Old Forester both up by 8%.
However, the group’s ‘rest of whiskey’ portfolio, which includes Scotch whisky Glenglassaugh and Slane Irish whiskey, plunged by 22%.
Meanwhile, Brown-Forman’s ready-to-drink range rose by 5%, driven by New Mix (up 13%).
Region by region
The firm’s ‘rest of portfolio’ was down by 2%, but was offset by a double-digit gain from Diplomático rum.
The group noted that net sales across all geographic markets were in decline, mainly led by the divestments of Finlandia vodka and Sonoma-Cutrer wines.
Full-year US sales were down by 2% organically as volumes struggled in a competitive market. Jack Daniel’s and Korbel Champagne also contributed to the market’s decrease, alongside the absence of Sonoma-Cutrer.
The group’s ‘developed international’ markets declined by 3%, due to Finlandia’s divestment and lower volumes in Italy, as well as South Korea and the UK (down by 6%).
Within this segment, only Australia managed to post organic growth of 1%. Germany declined by 3%, Canada fell by 8% and France was flat.
Emerging markets, on the other hand, posted organic growth (up 9%). Turkey soared by 43%, Brazil rose by 19%, and Poland and Mexico both grew by 4%.
Travel retail sales declined by 5%, led by super-premium Jack Daniel’s expressions and the absence of Finlandia.
“Our ability to deliver organic growth on both the top and bottom line in a year of softening consumer demand is a testament to the strength and resilience of our team,” said Lawson Whiting, Brown-Forman’s president and CEO.
“While our results did not meet our long-term growth aspirations, we made important progress in an exceptionally challenging macroeconomic environment.”
‘Continued headwinds’
For the next financial year, Brown-Forman expects both organic net sales and operating income to decline in the low-single-digit range.
The company cited challenges such as ‘low visibility due to macroeconomic and geopolitical volatility’, potential US tariffs and lower non-branded sales of used barrels.
Whiting added: “Looking ahead to fiscal 2026, we expect continued headwinds.
“Still, we are confident that with agility, innovation, and a clear focus on execution, we are well-positioned to navigate uncertainty and unlock new opportunities for sustainable long-term growth.”
The group highlighted that it expects to ‘unlock future growth” through recent changes in its US distribution, as well as restructuring plans and product innovation.
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