BrownForman reported QQ1 2025 results showing a revenue decline of 8% year over year (YoY) and a 4% organic decline after adjusting for divestitures of Finlandia and Sonoma-Cutrer, as well as the shift of Jack Daniel's Country Cocktails production to Pabst. The quarter featured solid contributions from Diplomático Rum, Old Forester, Woodford Reserve, and Jack Daniel's Tennessee Honey/Apple, but a meaningful decline in Jack Daniel's Tennessee Whiskey weighed on top-line momentum. Management reaffirmed the full-year outlook, signaling a year of two halves with a expected rebound in the second half as new super-premium brands Gin Mare and Diplomático reach scale and inventory normalizes. Gross margin compressed to 59.4% (down 140 bps from the prior year), driven largely by A&D headwinds from transition services and timing of input costs, partially offset by favorable price/mix (+200 bps) and a modest 70 bps benefit from the JD Country Cocktails transition. Net income declined to $195 million and diluted EPS to $0.41, with operating income at $281 million and a reported margin of ~29.5%. The company expects organic net sales growth of 2-4% for fiscal year 2025 and gross margin expansion as the second half unfolds, aided by the normalization of transition agreements and continued premiumization of the portfolio. The outlook emphasizes continued international diversification, price discipline, and capital investment to support long-term brand growth.