Brown-Forman Corp. reports net profit of $903 million, or $1.89 a share, up 9% on net sales of $3.5 billion, which grew 3% (+6% on an underlying basis) compared to fiscal 2020. Reported operating income increased 7% to $1.2 billion (+4% on an underlying basis) and diluted earnings per share grew 9% to $1.88.
The growth in fiscal 2021 was across all three International Money Fund clusters. Jack Daniel’s family of brands grew 4% (1%, reported), Brown Forman’s premium bourbons maintained double-digit underlying sales growth, and the tequila portfolio’s net sales grew 14% (9% reported).
Jack Daniel’s family of brands underlying net sales growth was driven primarily by Jack Daniel’s RTDs, the international launch of Jack Daniel’s Tennessee Apple, and volume-driven growth from 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.
The Jack Daniel’s family achieved several milestones in fiscal 2021 including:
◦ Jack Daniel’s RTDs depleted over 12 million 9L cases
◦ Jack Daniel’s flavors depleted over 3 million 9L cases
◦ Gentleman Jack depleted over 800 thousand 9L cases
Premium bourbons grew underlying net sales with both Woodford Reserve and Old Forester maintaining strong double-digit growth.
The tequila portfolio’s underlying net sales growth was led by double-digit underlying net sales growth for el Jimador and Herradura in the U.S. coupled with strong volume-driven increases from New Mix in Mexico. These gains were partially offset by declines for Herradura and el Jimador in Mexico.
Brown-Forman’s President and Chief Executive Officer Lawson Whiting stated, “Brown-Forman’s performance in fiscal 2021 demonstrates the resilience of our strategy and our people, and the strength of our portfolio and our brands. In an unprecedented and complex environment, we delivered underlying net sales
growth consistent with our long-term expectations. I am proud of this performance, and the work we did throughout the year to advance our commitments to environmental sustainability, diversity and inclusion, and community outreach. We place great care and focus on being strong stewards of our culture, our brands, and
our communities, and it is evident in this fiscal year’s results.”
Looking to the future, “We are optimistic as we look ahead, as we expect the operating environment to continue to improve” noted Jane Morreau, EVP/CFO said. “We remain confident in the collective strength of our markets and should benefit from the re-opening of the on-premise channel and increase in tourism. Additionally, our portfolio remains well-positioned to capitalize on the
continuing spirits premiumization trend. For fiscal 2022, we anticipate mid-single-digit growth in underlying net sales and operating income.”
