US: Top brands lead Brown-Forman Q2
Brown-Forman has reported double-digit growth in earnings per share in its second quarter, as the company continues to reap the rewards of strong growth from its leading brands, particularly Jack Daniel's.
"The higher earnings reflect volume and profit growth for the Jack Daniel's family of brands and gross profit gains for Southern Comfort, Finlandia and most of the company's other super-premium developing brands, including Sonoma-Cutrer, Tuaca, and Woodford Reserve," the company said yesterday (30 November) in a statement.
Second quarter earnings reached US$1.00, up 10% on the same period last year. The figure benefited from a net $0.08 per share gain related to the sale of an Italian winery completed in conjunction with the company's ongoing efforts to reduce wine costs and improve the performance of Bolla Italian wines.
Excluding this net gain and adjusting comparisons for a $0.04 per share reduction in tax expense in the prior-year period, earnings per share grew 7%.
Revenues grew 10% and gross profit increased 8% in the quarter. Comparisons to the prior year were, as in the previous quarter, affected by distribution changes in Germany and Australia. The company is now responsible for the collection and remittance of excise taxes in these markets.
Jack Daniel's global depletions grew at a mid-single digit rate in the quarter, with US and international volumes both increasing in the mid-single digits. Solid volume gains in Australia, France, Italy, and Japan offset softness in the quarter for the brand in the UK, Germany, and Spain. Global volumes for Southern Comfort grew at a mid-single digit rate in the quarter, led by continued growth in the US. Finlandia volumes grew at a double-digit rate, fuelled by strong growth in Poland.
For the first six months of the fiscal year, earnings per share were $1.76, up 9% from the $1.62 earned in the same period last year. Year-to-date results benefited from solid growth for Jack Daniel's, Southern Comfort, and improved volume and profits from the Jack Daniel's & Cola ready-to-drink product that is sold primarily in Australia.
Looking forward, the company said it was narrowing the range of its full-year earnings outlook to $3.14 to $3.30 per share, representing forecasted growth of 8% to 14% over adjusted prior-year earnings of $2.90 per share. This outlook includes the current quarter's $0.08 per share gain from the sale of the company's Italian winery and additional benefits from foreign exchange. It also includes expected further reductions in global distributor inventory levels and an expected higher tax rate in the second half of the fiscal year versus the prior-year second half.
This outlook excludes the impact of the company's pending acquisition of Casa Herradura, which was announced in August. As previously communicated, the company projects the acquisition will be dilutive to earnings through fiscal 2009. In fiscal 2007 the company estimates the transaction will dilute earnings in the range of $0.08 to $0.12 per share.
Blended Scotch whisky producers are banking on emerging markets to provide the growth to offset flat or declining sales elsewhere but a new report from just-drinks suggests this cannot be expected as ...
It may not be as well known as Scotch or bourbon but Japanese whisky is winning plaudits for quality and gaining ground internationally. Marcin Miller believes the growing popularity of Japanese cuisi...
Brown-Forman has confirmed details of its next quarterly dividend....
Bacardi Brown-Forman Brands (BBFB) is launching the premium Tequila brand Cazadores in the UK on-trade this month....
US wine and spirits group Brown-Forman has announced that its chief winery officer Steve Dorfman is to step down from his position, after 25 years' service....
Brown-Forman has called time on its Tequila joint venture with the Orendain family....
Brown-Forman is lining up the sale of its Paso Robles winery and vineyards in California as part of a streamlining of its wine operations....
Empire Merchants has formed a sales division to represent the Bacardi, Brown-Forman and Rémy Cointreau brands New York....
- What do A-B InBev results mean for SABMiller deal?
- Interview - Beam Suntory's EMEA president
- Interview - William Grant & Sons
- Anheuser-Busch InBev's FY Performance by Region
- just The Preview - Brown-Forman Q3 & YTD
- Diageo completes Don Julio, Bushmills swap deal
- Diageo, Beckham launch VIP pop-up for Haig Club
- Tesco reinstates Dan Jago following suspension
- Pernod Ricard sends Martell Mumm PJ head to Asia
- Pinnacle Vodka, Skinnygirl roll out on ice
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Beam Suntory Inc. - Strategy and SWOT Report
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research