Brown-Forman Corp. reports net income jumped 18% to $259 million, or 54 cents a share, as net sales rose 14% (22% organic) in the third quarter, ended Jan. 31.
The company also reported brand results for the first nine months of its fiscal year. The Jack Daniel’s family of brands delivered double-digit reported net sales growth of 12% (+14% organic) year-to-date fueled by Jack Daniel’s Tennessee Whiskey, which benefited from volume growth globally and favorable channel mix supported by the ongoing reopening of the on-premise channel.
Additionally, the continued international launch of Jack Daniel’s Tennessee Apple and strong consumer demand for Jack Daniel’s RTDs were significant contributors to growth. Supply chain disruptions adversely impacted the results for Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, and Gentleman Jack during the first nine months of the fiscal year. Reported net sales were positively impacted by an estimated net increase in distributor inventories.
Premium bourbons, led by Woodford Reserve and Old Forester, maintained double-digit reported net sales growth of 10% (+10% organic) led by gains in the United States, Travel Retail, and the United Kingdom. Woodford Reserve’s reported net sales moderated driven by supply chain disruptions resulting in a net decrease in distributor inventories.
The tequila portfolio’s double-digit reported net sales growth of 19% (+17% organic) was propelled by Herradura and el Jimador. Herradura grew volumes in the United States and Mexico due to strong consumer demand while Mexico also benefited as it cycled against a favorable prior-year comparison. el Jimador’s reported net sales growth was driven by broad-based volume gains in the United States, Colombia, and the United Kingdom.
Reported net sales in the United States grew 5% (+8% organic), the company said. Gains were driven by Jack Daniel’s Tennessee Whiskey, which benefited from volume growth and the continued reopening of the on-premise channel, along with strong consumer demand for our tequilas and premium bourbons. An estimated net increase in distributor inventories positively impacted reported net sales. This growth was partially offset by the effect of acquisitions and divestitures in the prior year along with lower volumes for Jack Daniel’s Tennessee Honey and Gentleman Jack. Reported net sales were adversely impacted by supply chain disruptions.
Developed international3 markets grew reported net sales 12% (+15% organic) fueled by broad-based growth largely due to the continued reopening of the on-premise channel as well as a rebound of travel and tourism in some markets.
Developed international3 markets grew reported net sales 12% (+15% organic) fueled by broad-based growth largely due to the continued reopening of the on-premise channel as well as a rebound of travel and tourism in some markets.