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Brown-Forman looks to buy back US$200m of shares

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Brown-Forman has launched a share repurchase push, hoping to acquire around US$200m of its own stock over the next 12 months.

Brown-Forman is looking to buy back around US$200m of its stock over the next 12 months

Brown-Forman is looking to buy back around US$200m of its stock over the next 12 months

The programme, which launched on Friday, comes against a backdrop described by CEO Paul Varga as an "uncertain market environment. Brown-Forman looks set to be hit hard by retaliatory import tariffs after US President Donald Trump went after imported aluminium and steel earlier this year.

China introduced a 25% tariff increase on a range of US goods, including US whiskey, last month. Around 53% of Brown-Forman's sales come from outside the US, led by the Jack Daniel's brand.

"We are appropriately attentive to today's uncertain market environment, but remain optimistic about the long-term growth prospects for our brands around the world," said Varga last week. "We strive to deliver leading returns for our shareholders and believe this buyback authorisation provides us with the flexibility to repurchase our shares when the market presents the opportunity."

Running until 12 July next year, the programme allows the company to repurchase Class A and Class B common stock. At the close on Friday, both the Class A and Class B stock were around the $51 level.

Retaliatory tariffs "wild card" for Brown-Forman – Analysis


Sectors: Spirits

Companies: Brown-Forman

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