US: Brown-Forman welcomes strong Q1 performance

• Q1 net profits rise by 25% to US$147.5m 
• Net sales in three months to end of July up by 4% to $878.1m
• Operating profits increase by 19% to $221.7m
• Confirms full-year outlook: high single-digit growth in underlying sales and operating profits

Brown-Forman has hailed a "great start" to its fiscal year, with rising profits helped by price increases in Q1.

Net profits in the three months to the end of July rose by 25% to US$147.5m, the company announced today (29 August). Sales were up by 4% to $878.1m in the period.

Operating profits jumped by 19% to $221.7m. 

The group said that net sales were boosted by buy-ins due to price rises implemented in the quarter. Brown-Forman's flagship brand, Jack Daniel's, grew sales by 15% in the period, including double-digit growth for its brand extension, Tennessee Honey. 

The growth of Tennessee Honey came from expansion outside the US, including the UK, the group said.

Sales of its Southern Comfort brands fell by 1%. However, the brands' Q1 sales grew in the US helped by a "more consistent media presence, more effective promotional efforts with the trade, and continued flavour innovation".

Finlandia vodka saw 20% net sales growth, fulled by a strong performance in Poland and Russia. Sales of El Jimador saw double-digit growth and Herradura grew net sales over 30%, driven by solid performance in the US and Mexico, the group said.

Paul Varga, Brown-Forman's CEO said: "Underlying net sales growth of 10% in the first quarter was driven by the continued strength of our Jack Daniel's trademark as well as improving results from other brands in our premium portfolio."

Looking ahead, the group confirmed its full-year earnings outlook and expects high single-digit growth in underlying sales and operating income.

Shares in Brown-Forman today were up by 0.13% at $62.78.

To view the company's statement, click here