US: Jack Daniel's drives Brown-Forman as H1 figures rise

By Chris Mercer | 8 December 2011

  • Net profits in six months to end October lift by 4% to US$275.6m
  • Sales in H1 also up, by 12% to $1.85bn
  • Operating profits see 6% increase, to $432.2m
  • Double-digit volume growth for Jack Daniel's drives half-year performance
Brown-Forman issued its half-year results this morning

Brown-Forman issued its half-year results this morning

Jack Daniel's has helped to drive Brown-Forman to rises in sales and profits for the first half of its fiscal year, but could not prevent the group from trimming its full-year guidance.

Key brands Jack Daniel's, Finlandia and El Jimador lifted Brown-Forman to a 12% increase in net sales for the six months to the end of October, to US$1.85bn, the group said today (8 December). Southern Comfort, another key brand, continued to decline.

The strong top-line performance helped Brown-Forman to a 6% rise in operating profits, to $432.2m. Net profits increased by 4% on the same period of last year, to $275.6m.

Despite this, Brown-Forman cut its guidance for full-year diluted earnings per share. Its new range is between $3.45 and $3.70, compared to a range of between $3.45 and $3.85 previously. 

Rather than a consequence of the economic gloom, Brown-Forman said that the trimmed guidance reflects the expected strength of the US dollar. Group CEO Paul Varga said: "While we expect the strengthening of the US dollar to 

dampen our reported earnings, we anticipate the continuation of our strong underlying results for the remainder of our fiscal year.”

According to Varga, Brown-Forman benefited in the first-half from strong sales momentum both in the firm's native US and further afield, particularly in Germany, Mexico, UK, Turkey, France, Brazil, Australia and Canada. 

In the second quarter, Brown-Forman reported net sales up by 12% to $1bn. Operating profits rose by 5% to $246.3m, with net profits up by 2% to $157.6m.

For the company's official release, click here.

Expert analysis

Brown-Forman Corporation: Company Profile and SWOT Analysis

ICD Research's "Brown-Forman Corporation: Company Profile and SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, financial ratios, SWOT analysis, key facts, information on products and services, details of locations and subsidiaries, plus information on key news events affecting the company.

Sectors: Company results, Spirits, Wine

Companies: Brown-Forman, Jack Daniel’s, Finlandia, Southern Comfort

View next/previous articles

9 Dec 2011 -

just the Research

Currently reading -

US: Jack Daniel's drives Brown-Forman as H1 figures rise

There are currently no comments on this article

Be the first to comment on this article

Related articles

Product Launch - UK: Brown-Forman's Finlandia Blackcurrant

Brown-Forman's Finlandia Blackcurrant

US: Brown-Forman declares dividend

Brown-Forman has announced the details of its latest dividend payment.

just the Round-Up - The week in drinks

The top ten stories published on just-drinks last week:

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page