Brown-Forman takes $52 mln impairment charge on Finlandia brand after leaving Russia

MOSCOW. June 9 (Interfax) - Brown-Forman (SPB: BF.B) Corp., the producer of Jack Daniel's whisky and Woodford Reserve bourbon, recognized a $52 million non-cash impairment charge for its Finlandia vodka brand in the fourth quarter of fiscal 2022.

"The impairment reflects a decline in our long-term outlook for Finlandia due to our suspension of operations in Russia, a key market for the brand," the company said in a press release. The company announced the suspension of business in Russia at the beginning of March.

Russia was one of the largest developing markets for Brown-Forman in fiscal 2022, along with Mexico, Poland, Brazil and Chile. The company's sales on the Russian market rose 7% (13% organically) in the year.

Brown-Forman's total revenue grew by 14% (17% organically) to $3.933 billion in fiscal 2022.

The company's brand portfolio includes Jack Daniel's, Woodford Reserve, Old Forester, Finlandia, and Pepe Lopez and el Jimador tequila, among others. Brown-Forman sells its products in more than 170 countries.