Brown-Forman Corp. reports sales of $985 million, essentially flat but up 4% on an underlying basis, and a 15% drop in profit to $240 million, or 50 cents a share, in the fiscal second quarter, ended Oct. 31.
Brown-Forman also reported that for the first six months, net sales eased 1% to $1.74 million (up 4% on an underlying basis) from the like year-earlier period. Net profit jumped 21% to $564 million, or $1.18 a share.
“Our business accelerated in the second quarter amidst an unprecented environment,” said Lawson Whiting, president/CEO.
The United States grew underlying net sales 9% (+3% reported) while developed
international markets grew underlying net sales 10% (+10% reported). Underlying net sales in our emerging markets were flat ( 13% reported).
Jack Daniel’s family of brands underlying net sales grew 2% ( 3% reported). Underlying net sales growth from Jack Daniel’s RTDs, Jack Daniel’s Tennessee Apple, Jack Daniel’s Tennessee Honey, and Gentleman Jack, was partially offset by an unfavorable channel mix shift in JackDaniel’s Tennessee Whiskey.
Premium bourbons grew underlying net sales 22% (+18% reported) driven by sustained double digit growth across Woodford Reserve and Old Forester.
The tequila portfolio grew underlying net sales 13% (+5% reported) led by strong volume-driven increases from New Mix in Mexico and el Jimador in the U.S., which additionally benefited from higher prices, the company said. Herradura’s underlying net sales declined 2% ( 4% reported) as lower volumes, primarily in Mexico, more than offset double digit growth in the United States.
Non branded and bulk underlying net sales declined 33% ( 34% reported) primarily reflecting lower demand and pricing for used barrels.
Underlying operating income increased 11% (+19% reported) driven primarily by operating expense leverage.