US: Brown-Forman posts healthy H1 as margins improve
- Six-month net profits up by 16% to US$320.5m
- H1 net sales rise by 2% to $1.89bn
- Operating profits jump by 12% to $484m
- Jack Daniel’s brands net sales up by 9%
Brown-Forman released its H1 results today
Brown-Forman has posted a double-digit increase in H1 net profits as volumes gains and price increases saw it raise its full-year outlook.
Net profits in the six months to the end of October jumped by 16% to US$320.5m, the Kentucky-based spirits and wine group said today (5 December). Net sales increased by 2% to $1.89bn over the same period, while operating profits increased by 12% to $484m.
The numbers mirrored the group's Q1, when net profits rose by 25% in the three months to the end of July and net sales increased by 4%. Operating profits increased by 19%.
Most Brown-Forman brands saw sales rise in the first-half, with the core Jack Daniel's range recording a 9% increase, the company said.
Finlandia’s 9% rise in net sales was driven by Russia, while premiumisation trends also helped super and ultra-premium whiskey brands, such as Gentleman Jack and Woodford Reserve, grow net sales by 21% in the first half.
Global sales of Southern Comfort fell by 5% as demand faltered in the UK and Australia, Brown-Forman said.
The US continued to to drive the company, contributing 40% of its sales growth.
However, net sales in Western Europe, including the UK and France, were down low-single digits, with ongoing economic weakness expected to “remain challenging”, the company said.
Travel Retail delivered 9% net sales growth, driven by “successful innovation, new product launches, and price increases”.
The strong overall results led to Brown-Forman raising its full-year operating profits expectations to low double-digit growth, adding: “While there continues to be uncertainty in the global economy going into the important holiday selling season, the company continues to expect high single-digit growth in underlying sales.”
The company did not release a breakdown of its second-quarter results.
To read the company's official statement, click here.
In this month's management briefing, Ben Cooper looks at the alcoholic drinks industry's attempts to reduce alcohol harm and promote responsible consumption. Part one of this four-part briefing consid...
Earlier this week, brand valuation consultancy Intangible Business released the results of its latest survey of the world's spirits brands. Here's a look at the top ten, along with the methodology use...
The ten fastest-growing spirits brands in the US ranked by percentage increase in volume in 2012 versus 2011: ...
- Comment - Diageo Steps Up Defence of Haig Club
- Focus - Diageo's H1 Results by Region, Brand
- Comment - Spirits - Where Next for Scotch Whisky?
- just the Preview - Diageo Q2 & H1
- just the Facts - Top 20 US Beers by Value, Volume
- Belvedere vodka tie-up over new James Bond film
- Diageo speaks out over supplier contract changes
- Brown-Forman appoints Jack Daniel's president
- Diageo inks UK distribution deals
- ASA rejects Haig Club ad complaints
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)