US: Brown-Forman sees Q3 continue upward trend
- Year-to-date net profits climb by 10% to US$526m
- Net sales in nine months to end of January increase by 4.6% to $3.05bn
- Operating profits rise by 8.6% to $783m
- Raise full-year EPS outlook
Brown-Forman reported its Q3 and YTD results earlier today
Brown-Forman has toasted a "great" set of numbers for its fiscal third quarter, with the healthy momentum of the first half continuing.
The company said earlier today (5 March) that net profits in the nine months to the end of January came in 10% up on the corresponding period a year earlier, totalling US$526m. Net sales were up by 4.6% to $3.05bn, with operating profits following suit, increasing by 8.6% to $783m.
For the third quarter, net profits rose by 12.7% to $177m, on the back of a 5% lift in sales, which hit $1.08bn in the three months to the end of January. Operating profits were up by 7.6% at $255m.
The numbers were in line with first-half results released in December as Brown-Forman's North American whiskies continued to perform strongly.
Paul Varga, the company’s CEO, said, “We delivered great top- and bottom-line results in the third quarter, continuing the momentum from the first half. We believe our top-tier performance was due primarily to the global strength of the Jack Daniel’s trademark, disciplined innovation, our favourable skew to outperforming categories and price points, and our limited exposure to some of the emerging markets that have decelerated.”
The Jack Daniel’s portfolio grew underlying sales by 10%, including double-digit gains for Tennessee Honey, Brown-Forman said. Super-premium whiskey brands also showed impressive growth, with underlying sales up by 16%, including 27% growth from Woodford Reserve brands.
Looking ahead, Varga said the company is raising its full-year outlook and now expects low double-digit growth in underlying operating income. The diluted earnings per share (EPS) outlook was also raised, to $2.95-$3.05.
Brown-Forman's share price was up 1% in pre-market trading today.
To read the company's official statement, click here.
For a look at the results on a regional and brand basis, click here.
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