What is the market's earnings forecast for Brown-Forman A next quarter?

What is Brown-Forman A's gross profit margin?

What were the key takeaways from Brown-Forman A’s earnings call?

What does Brown-Forman A do and what are its main business segments?

What is the revenue and EPS growth rate for Brown-Forman A year over year?

What factors drove the changes in Brown-Forman A's revenue and profit?

What were the key takeaways from Brown-Forman A's earnings call?

What is Brown-Forman A's latest dividend and current dividend yield?

- **Emerging Market Growth**: 12% organic growth in Mexico, Brazil, and Travel Retail offset developed market declines.
- **Blackberry Success**: Jack Daniel's Tennessee Blackberry exceeded expectations, driving 18% RTD growth in Mexico and strong international launches.
- **Headwinds**: 61% used barrel sales decline and 60% Canada sales drop constrain top line.
- **Gross Margin Expansion**: 30bps expansion from A&D benefits, despite cost/mix headwinds.
- **Strategic Initiatives**: Distributor transitions, workforce restructuring, and innovation (Blackberry) positioning for long-term growth.

**【CEO Summary Section】**
- **Global Performance**: Organic net sales were flat in the first half, driven by 12% growth in emerging markets (Mexico, Brazil) and 6% growth in Travel Retail, offsetting a 6% decline in developed international markets and flat U.S. performance.
- **Strategic Innovations**: Jack Daniel's Tennessee Blackberry exceeded expectations, with shipments exceeding depletions and strong international launches in the U.K., Germany, and France. New Mix (tequila-based RTD) contributed 18% organic growth in Mexico.
- **Headwinds**: Used barrel sales declined 61%, and Canada's organic sales dropped 60% due to U.S. spirits being off-shelf in most provinces.
- **U.S. Distributor Changes**: Transition to new distributors in 13 markets (effective August 1) is complete, with improved focus and investment from partners. Organic net sales closed the gap to total distilled spirits (TDS) in the U.S., with depletion-based results +3% vs. TDS takeaway -3%.

**【CFO Financial Commentary】**
- **Gross Margin**: Reported gross margin expanded 30bps to 59.5%, driven by $190m A&D benefit (Korbel divestiture, Sonoma-Cutrer TSA end) offsetting $160m headwinds from lower production, inflation, and RTD mix.
- **Operating Expenses**: Organic A&P down 1% (aligned with depletion-based sales), organic SG&A down 4% due to workforce restructuring. Full-year outlook for organic operating income: low single-digit decline.
- **Cash Flow**: Free cash flow +179% to $236m, driven by lower CapEx ($110-120m vs. prior $125-135m) and working capital management. Dividend increased 2%, with $99m share buybacks under $400m authorization.
- **Full Year Guidance**: Reaffirmed low single-digit organic decline, with gross margin expansion from A&D benefits offsetting cost/mix headwinds.

**【Q&A Highlights】**
- **Holiday Season**: Distributors are focused on Jack Daniel's Blackberry and Tennessee Honey/Fire/Applie, with cautious consumer behavior in U.S. and Europe. Teams are prepared for seasonality post-transition.
- **Consumer Trends**: U.S. TDS takeaway down low single-digit, with trade-down to $10-30 price points. Global Travel Retail passenger traffic exceeds pre-pandemic levels.
- **Pricing Strategy**: U.S. pricing down 0.3%, with rational industry behavior. Focus on protecting margins while supporting innovation.
- **Blackberry Launch**: International launches in 8 markets (U.K., Germany, France, GTR) show strong trade/consumer feedback. U.S. shipments/depletions gap narrowing as launch matures.
- **Cost Savings**: SG&A savings moderating as 2025 workforce restructuring benefits lap. Continued focus on controlling controllable expenses.


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