US: Price hikes boost Brown-Forman FY profits

By | 5 June 2013

  • 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 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.

Expert analysis

Global Beer Tax Tables, 2012

This report covers 58 markets and comprises a series of tables covering taxation base, historical excise rates, legal controls and a calculation of the total taxation burden on beer.

Sectors: Company results, Spirits

Companies: Brown-Forman, Jack Daniel’s

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