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Drinks

Brown-Forman 'Well Positioned' For Growth In The Coming Year, Says CEO

Brown-Forman, the parent company of Jack Daniel's, has said that it is 'well positioned' for growth in the current financial year, following a 14% increase in reported net sales in the year to 30 April.

The group posted net sales of $3.93 billion (€3.66 billion) for the full-year period, while reported operating income was 3% higher at $1.2 billion (+27% on an organic basis).

Earnings per share in fiscal 2021 included an estimated $0.20 per share benefit from the the sale of the Early Times, Canadian Mist, and Collingwood brands and related assets, the company added.

'Exceptional Results'

“I am proud of our exceptional results, our strategic progress, and yet another year of growth despite numerous headwinds," commented president and chief executive Lawson Whiting.

"We achieved these results due in large part to the resurgence of Jack Daniel’s Tennessee Whiskey, which experienced strong consumer demand as the on-premise channel reopened around the world. Equally important, we believe we are well positioned for continued growth in the fiscal year ahead given our strategic initiatives and our talented teams.”

Brown-Forman said that all geographic areas 'contributed meaningfully' to the group's full-year performance.

Its core Jack Daniel’s Tennessee Whiskey brand was the driving force of its performance, it noted, seeing 20% reported net sales growth for the year (+23% organic), while premium bourbons, led by Woodford Reserve and Old Forester, grew reported net sales by 17%.

Its tequila portfolio, led by the Herradura and el Jimador brands, reported a 22% increase in reported net sales.

Read More: Consumer Preference For Premium Spirits Helping To Boost Brown-Forman, CEO Says

The Year Ahead

Looking ahead to the coming year, Brown-Forman said that it anticipates continued growth into 2023 despite the current global macroeconomic and geopolitical uncertainties.

It expects the net effect of inflation, coupled with the removal of EU and UK tariffs on American whiskey, to lead to a slight expansion in reported gross margin. Organic net sales growth is expected to rise by mid single digits.

© 2022 European Supermarket Magazine – your source for the latest Drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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