US: North American whiskey demand bodes well for Brown-Forman as YTD numbers rise
- Nine-month net profits jump by 17% to US$478m
- Net sales in nine months to end of January rise by 4% to $2.92bn
- Operating profits in year-to-date climb by 13% to $721.1m
- Total volumes up by 5%, Jack Daniel's portfolio rises by 6%
Brown-Forman posted rises in sales and profits for its year-to-date
Brown-Forman has hailed rising global demand for North American whiskey as helping drive its performance in the nine months of its fiscal year so far.
The US-based company said earlier today (6 March) that net profits in the nine months to the end of January came in 17% up on the corresponding period a year earlier, at US$478m. Net sales inched up by 4% to $2.92bn, while opertaing profits increased by 13% to $721.1m.
In the third quarter, net profits jumped by 18% to $157.6m, with net sales rising by 7% to $1.03bn. Operating profits for the three-month period were up by 15% at $237m.
The year-to-date numbers are in-line with the firm's half-year results, released in December, when net and operating profits were both up, by 16% and 12% respectively, and sales inched up by 2%.
“Our third quarter and year-to-date results reflect the excellent geographic breadth of our company, as well as improved portfolio and volume/margin balance," said Brown-Forman's CEO, Paul Varga. "Given the momentum we observe today for the North American whiskey category, emerging markets, and premium-priced spirits generally, we believe Brown-Forman is positioned well for continued strong growth."
The firm subsequently narrowed its full-year earnings outlook, which are now expected to come in between $2.60 to $2.68 per share, from the previous $2.58 to $2.70 range.
The revised outlook includes a negative $0.05 impact in Q4 from charges associated with the redemption of the company's 2014 notes, as well as adverse foreign exchange moves.
For the company's official statement, click here.
Click here for a closer look at Brown-Forman's performance by brand and by region.
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