Brown-Forman Net Sales Rise 1% in Quarter, Profit Falls

Brown-Forman Corp. reports net profit in the third fiscal quarter rose 1% to $911 million.  Net income fell 5% to $219 million, or 45 cents a share.

For the full nine months, the company logged sales of $2.649 billion, basically unchanged from a year earlier.  Sales in the U.S. rose 3% in the nine months, 10% in developed international markets and just 1% in developing markets.  Jack Daniel’s family sales grew 2%, driven primarily by growth from Jack Daniel’s RTDs, Jack Daniel’s Tennessee Apple, Jack Daniel’s Tennessee Honey, and Gentleman Jack. These gains were partially offset by a reduction in Jack Daniel’s Tennessee Whiskey’s underlying net sales.

Premium bourbons grew underlying net sales 21% (+18% reported), with both Woodford Reserve and Old Forester maintaining strong double-digit growth. The tequila portfolio grew underlying net sales 6% (+2% reported) led by strong volume-driven increases from New Mix in Mexico.

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