BF

Brown-Forman Corporation stock research

Apr 30, 2023

FY2023 Q4

Brown-Forman (BF-B) Gross Margin — Quarter Ended Apr 30, 2023

Revenue decreased compared to the prior quarter, while gross profit increased slightly, resulting in an improved gross margin. Versus the same quarter last year, revenue was higher but gross profit was lower, leading to a weakened gross margin.

Gross margin takeaway

Quarter ended Apr 30, 2023 · FY2023 Q4

Revenue decreased compared to the prior quarter, while gross profit increased slightly, resulting in an improved gross margin. Versus the same quarter last year, revenue was higher but gross profit was lower, leading to a weakened gross margin.

  • The gross margin improved from the prior quarter, driven by a larger decline in cost of revenue relative to the decrease in revenue. Compared to the year-ago quarter, the gross margin weakened as cost of revenue increased more than revenue.
  • Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was lower, and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

60.7%

Gross profit

$635.0M

Revenue

$1.0B

Cost of revenue

$411.0M

Quarter-over-quarter change

+3.0 pts

Year-over-year change

-2.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jan 31, 2023$1.1B$624.0M$457.0M57.7%
Apr 30, 2023$1.0B$635.0M$411.0M60.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jan 31, 2023

+3.0 pts

Year-over-year change

Apr 30, 2022

-2.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved from the prior quarter, driven by a larger decline in cost of revenue relative to the decrease in revenue. Compared to the year-ago quarter, the gross margin weakened as cost of revenue increased more than revenue.

Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was lower, and gross margin weakened.

Monitor the relationship between cost of revenue and revenue, as cost of revenue increased more than revenue year-over-year, compressing gross margin.

BF-B Gross Margin — Quarter Ended Apr 30, 2023