US: Price hikes boost Brown-Forman FY profits
- FY net profits rise by 15% to US$591m
- Net sales increase by 5% to $3.78bn
- Operating profits rise by 14%, hitting $898m
- Jack Daniel's sales up 11%
- Tennessee Honey US sales up 37%
Brown-Forman announced its Q4 and FY results today
Brown-Forman has posted a strong set of full-year results as increased demand for North American whiskey and “solid” price increases pushed up profits, the company said today (5 June).
Net profits rose by 15% to US$591m in the year to the end of April, the US company said. Net sales also climbed by 5% to $3.78bn in the period while, operating profits jumped by 14% to $898m.
Fourth-quarter numbers were just as healthy. Net profits rose by 8% to US$113m in the three months to the end of April, while net sales increased by 8% to $866m.
Operating profits increased by 18% to $177m in the three months.
"Due to continued global interest in North American whiskey and favourable trends in premiumisation, we remain cautiously optimistic that Brown-Forman’s strong and balanced organic growth will continue in fiscal 2014,” said Brown-Forman CEO Paul Varga.
The company said its “outperformance” was pushed by the continued growth of Jack Daniel’s Tennessee Honey, up 37% in US sales, and growth from premium and above brands.
The Jack Daniel's range posted full-year sales growth of 11% while sales of “super and ultra-premium” whiskey brands were up by 19%.
Looking ahead, the company said it expects 2014 to deliver “high single-digit” sales growth hepled by the continued global expansion of Tennessee Honey.
To read the company's official statement, click here.
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