Brown-Forman Reports Full Year Net Sales Growth Of 2%
Brown-Forman Corporation, the parent of Jack Daniel's, has posted net sales growth of 2% to $3.3 billion (€2.95 billion) for its financial year ended 30 April 2019.
Underlying net sales grew by 5%, offset by foreign exchange and tariff-related lower net prices to distributors in certain markets.
Commenting on the group's performance, president and CEO, Lawson Whiting, said, "This growth rate is in line with fiscal 2018, as well as our expectations for fiscal 2020, demonstrating the consistency of our revenue delivery."
"We believe that delivering sustained, compounding growth is the best way to create value for shareholders over the long term," he added.
Brown-Forman's full-year operating income grew 9% to $1.1 billion (€1.02 billion), and diluted earnings per share grew 17% to $1.73.
The spirit giant's reported net sales in the fourth quarter increased 1% to $744 million when compared with the same period the previous year.
Brown-Forman's performance was boosted by solid, broad-based growth around the world, especially in emerging markets.
Underlying net sales in emerging markets grew 11% on top of last year’s growth of 13%.
The Jack Daniel’s family of brands posted underlying net sales growth of 4%, including a 2% underlying net sales growth for Jack Daniel’s Tennessee Whiskey.
Underlying net sales of premium bourbons increased by 23%, including 22% underlying net sales growth from Woodford Reserve.
Tequila brands Herradura and el Jimador saw underlying net sales grow by 13%.
"Although tariffs and higher input costs will negatively impact our gross margins again this year, we believe we are on track to return to high single-digit operating income growth as we move beyond fiscal 2020," Whiting commented.
"Our growth prospects remain bright as we develop our premium spirits portfolio around the world, led by the Jack Daniel’s family of brands and Woodford Reserve," he added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.