Brown-Forman Corporation (NYSE: BFA, BFB) reported financial results for its second quarter and first half of fiscal 2025, ended October 31, 2024. 

Second quarter reported net sales decreased 1% to $1.1 billion (+3% on an organic basis) compared to the same prior-year period. In the quarter, reported operating income increased 1% to $341 million (+5% on an organic basis) and diluted earnings per share increased 9% to $0.55.

For the first six months of the fiscal year, the company’s reported net sales decreased 5% to $2.0 billion (flat on an organic basis) compared to the same prior-year period. First half reported operating income decreased 7% to $622 million (-3% on an organic basis) and diluted earnings per share decreased 3% to $0.96.

“Despite challenging economic conditions, our results for the first half of the fiscal year were in line with our expectations, and we anticipate a return to growth in fiscal 2025,” Lawson Whiting, Brown-Forman’s President and Chief Executive Officer said in a news release. “We continue to expect our performance to accelerate through the second half of the year, driven by the strength of our strategy, our portfolio, our geographic breadth, and, of course, our talented people.”

First Half of Fiscal 2025 Highlights

• Net sales declines were largely due to the Finlandia and Sonoma-Cutrer divestitures.

• Net sales declined across all geographic aggregations, but improved sequentially in international markets and the Travel Retail channel.

• Gross profit declined 8% (-4% organic) primarily due to the Finlandia and Sonoma-Cutrer divestitures. Gross margin contracted 240 basis points largely related to the timing of input cost fluctuations coupled with high inventory levels, partially offset by favorable price/mix.

• Operating expenses declined by 10% (-4% organic).

• The Brown-Forman Board of Directors increased the quarterly cash dividend for the 41st consecutive year.

Read more: Brown-Forman Chair to Step Down in July

About Brown-Forman Corporation

Brown-Forman Corporation has been building spirits brands for more than 150 years. The company’s portfolio of brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador and many more. With a team of approximately 5,700 employees worldwide, Brown-Forman products can be found in more than 170 countries. Discover more about us at brown-forman.com.