Brown-Forman Corp shares are trading higher in premarket on Wednesday.

The company reported a third-quarter FY25 sales decline of 3% year-on-year to $1.03 billion, missing the analyst consensus estimate of $1.08 billion.

EPS of $0.57 beat the consensus estimate of $0.47.

The gross margin expanded about 40 basis points to 59.8%. The operating margin contracted 780 basis points to 27.1%, and operating income for the quarter plunged 25% to $280 million.

The company held $599 million in cash and equivalents as of January 31. Cash provided by operating activities for nine months totaled $446 million.

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Lawson Whiting, Brown-Forman's President and Chief Executive Officer, shared, “While we anticipate continued uncertainty and headwinds in the external environment, we are also confident that we have the right people, brands, and strategy in place to take advantage of ongoing growth opportunities.”

On February 20, 2025, the Brown-Forman Board of Directors declared a regular quarterly cash dividend of $0.2265 per share on its Class A and Class B common stock. The dividend is payable on April 1 to stockholders of record on March 7.

Outlook FY25 Reaffirmed: Brown-Forman sees FY25 organic net sales growth of 2% – 4% and organic operating income growth of 2 – 4%.

The company anticipates capital expenditure of $180 million – $190 million.

The company noted that the operating environment continues to be increasingly volatile due to geopolitical uncertainties and global macroeconomic conditions.

Price Action: BF.B shares are trading higher by 4.89% at $34.30 in premarket at last check Wednesday.

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