Brown-Forman Q3 results – Preview

On Wednesday, Brown-Forman will report its third-quarter results. Here, just-drinks takes a look at the company’s performance in the three months to the end of January:

• At the start of November, Brown-Forman launched a motel-themed marketing push in the US for its Jack Daniel’s American whiskey
• Next, the company enlisted comedian Danny McBride to push a new serve for its ailing Southern Comfort brand
• Towards the end of the month, Brown-Forman said it would “vigorously” contest a lawsuit issued by Sazerac over online advertising practices for Jack Daniel’s Tennessee Fire
• At the start of December, the company reported its Q2 and H1 results. Six-month sales dipped, while profits came in flat
• Speaking after the results announcement, CEO Paul Varga said prices for North American whiskey would start to rise if global demand leached stocks
• In mid-January, Brown-Forman agreed to sell its Southern Comfort and Tuaca spirits brands to Sazerac in a deal worth US$543.5m. The move followed months of speculation
• The company ended the quarter with a US$1bn share repurchase programme

Q2 and H1 highlights

• Half-year net profits held steady at US$356m
• Net sales in six months to end of October slipped by 3% to $2bn
• Operating profits inched up by 1% to $529m
• Q2 net profits dipped by 3% to $200m
• Net sales in three months to end of October were down by 4% to $1.1bn
• Operating profits came in flat at $302m

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