Brown-Forman reports strong Q129 August 2012
Jack Daniel’s whisky and Finlandia vodka distiller Brown-Forman has hailed a “great start” to the first quarter in fiscal 2013 after the firm grew net sales by 4% to $878.1 million.
Brown-Forman said that its net sales were up 10% on an underlying basis while net income increased 19% to $221.7 million, up 17% on an underlying basis.
Jack Daniel’s sales were up 15% and the firm’s Finlandia brands increased by 20%. The firm said that stronger Jack Daniel’s sales were aided by buy-ins in advance of price rises and Finlandia was boosted by strong growth in Poland and Russia.
El Jimador's net sales were up 11% and Herradura grew net sales over 30%, driven by solid performance in the US and Mexico.
Underlying net sales outside of the US grew 10% and emerging markets were up 13% driven by Poland, Mexico, Russia and Turkey. The firm said that price rises in the UK, Germany and France had slowed net sales to high single digit growth but performance continued to exceed expectations.
The company delivered high single digit growth in Australia driven by continued strength in Jack Daniel's Tennessee Whiskey and the launch of Jack Daniel's Tennessee Honey in June.
"Building from our strong fiscal 2012 results, Brown-Forman is off to a great start in fiscal 2013,” said Paul Varga, Brown Forman’s chief executive.
“Underlying net sales growth of 10% in the first quarter was driven by the continued strength of our Jack Daniel's trademark as well as improving results from other brands in our premium portfolio."
Brown Forman maintained its outlook for the fiscal 2013 of earnings in the region of $2.40 to $2.67 per share.
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