News

US: Slowing SoCo tempers Brown-Forman FY forecast

Most popular

Campari faces familiar troubles - analysis

Why 'disaster' is no hyperbole for French wine

COVID prompts spirits RTD tsunami - comment

How A-B InBev's Brito changed the drinks industry

Will 2020 see Campari Group back on the M&A hunt?

MORE

Brown-Forman has narrowed its full-year forecast, following the release of its third quarter results.

The US-based wine and spirits company said late last week that sales in the three months to the end of January climbed by 16% year-on-year to US$877.4m. Net income, meanwhile, increased by 10% to $116m.

The company credited the addition of profits from the Casa Herradura Tequila brands, acquired early last year, benefits from favourable foreign exchange fluctuations, higher global consumer demand for Jack Daniel's Tennessee Whiskey and Finlandia Vodka, an "exceptional" increase in US demand for Gentleman Jack, and "continued excellent growth" for the Jack Daniel's & Cola RTD in Australia as contributing to profit growth for the quarter.

Partially offsetting these gains, however, were softness for Southern Comfort and higher raw material costs. Global depletions for Southern Comfort declined for the three-month period, with weakness in both the US and international markets, Brown-Forman noted.

For the first nine months of its fiscal year, sales were up by 19% at $2.51bn, with net income coming in 6% up at $340.7m.

Looking forward, Brown-Forman said it expects full-year earnings to total in the region of $3.42 to $3.50 per diluted share, representing forecast growth of 9% to 11% for 2007-2008. In November, the company said it expected full-year earnings to come in between $3.42 and $3.54 per share.

"Our earnings expectations for the fourth quarter include continued global growth for the company's brands, an expected lower tax rate, and modest additional benefits from foreign exchange," the company said.

"This outlook is tempered by a challenging economic environment and expectations of higher energy and grain costs."


Related Content

Brown-Forman in fiscal-2021 - results preview

Brown-Forman in fiscal-2021 - results preview...

Sales lift for Brown-Forman in Q1 as US stays strong - results data

Sales lift for Brown-Forman in Q1 as US stays strong - results data...

Brown-Forman 2021 growth grinds to halt in third quarter - results data

Brown-Forman 2021 growth grinds to halt in third quarter - results data...

How did Brown-Forman perform in Q3 & YTD fiscal-2020? - results data

How did Brown-Forman perform in Q3 & YTD fiscal-2020? - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?