Brown-Forman Posts 3% Increase In Q3 Net Sales
The parent of Jack Daniel's, the Brown-Forman Corporation, has posted a 3% year-on-year increase in net sales, to $904 million (€799.6 million), for the third quarter of its financial year.
Operating income for the period grew by 4%, to $320 million (€283.04 million), and diluted earnings per share grew by 20%, to $0.47.
Net sales in the first nine months of its financial year increased by 3%, to $2.58 billion (€2.28 billion).
Underlying net sales in emerging markets were up by 10% (+3% reported), while in developed international markets, it witnessed a 4% (flat reported) growth.
In the United States, underlying net sales grew by 4% (+3% reported), driven by strong performance by Brown-Forman's premium Woodford Reserve and Old Forester bourbons.
Chief executive Lawson Whiting said, "Our portfolio of premium spirits brands delivered solid rates of sustained sales growth, led by the strength of our bourbon and tequila brands, as well as the international expansion of the Jack Daniel’s trademark."
The company's underlying net sales growth was driven by strong demand for American whiskey.
Underlying net sales of Jack Daniel’s family of brands grew by 4% (+2% reported) globally.
However, it was negatively impacted by approximately one percentage point, due to tariff-related lower net prices.
Jack Daniel’s Tennessee Whiskey reported 2% underlying net sales growth (flat reported), driven by volume gains.
The company has forecast underlying net sales to grow between 6% and 7% in 2019, provided that tariffs remain in place for the full fiscal year.
Whiting added, "We remain on track to deliver another strong year of results, as cost discipline helped offset some of the large burdens we are absorbing due to the retaliatory tariffs on American whiskey."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.