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Brown-Forman Reports Q3 Results

CONSUMER STAPLES
Brown-Forman (liquor parent of brands including Jack Daniel) {BF/B US Equity} reports slight misses for Q3 & brings down guidance.

  • Slight miss on revenue, but margin beats seem to have brought operating & net income to beat marginally.
  • Cash & long-term debt were little changed at $589m & $2.7b respectively.
  • FY24 guidance is now for flat organic sales (prev. 3-5%), operating income +0-2% (prev. +4-6%) & Capex slightly lower at $230-240m (prev. $250-$270m).
  • The A1/A- (Stable) rated name has a single € 26 line {LW661127 Corp}, it runs high leverage for its rating, a recovery in operating metrics (company now guiding below Moody's expectation) is necessary for it to hold onto ratings.
  • Earnings call at 3pm London; https://register.vevent.com/register/BI8cab5224f16...

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