US: Brown-Forman to spend US$250m on share buyback
Brown-Forman plans to buy back US$250m of shares
Brown-Forman has lined up a year-long share repurchase programme.
The US wine and spirits firm said this week that it has pegged US$250m for the buyback, which will kick in next week and run until the end of September next year. The money will be spent on class A and Class B shares.
“This programme is both a flexible and effective way for us to utilise our considerable cash flow for the benefit of shareholders,” said CEO Paul Varga. “This, along with our previously announced production expansion at the Jack Daniel’s, Woodford Reserve, and Sonoma-Cutrer facilities reinforces our belief in the company’s long-term business prospects.”
Brown-Forman added that it may modify, suspend or terminate the programme “at any time without prior notice”.
Last month, the company posted a slight fall in Q1 net profits despite a small lift in sales for the period.
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