Brown-Forman Corp. reports fiscal first quarter net sales increasing 3% to $1 billion (+2% on an organic basis). In the quarter, reported operating income decreased 4% to $327 million (-6% on an organic basis) and ne income fell 7% to $231 million as did diluted earnings per share, which decreased 7% to $0.48.
Lawson Whiting, president/CEO, said, “As anticipated, our first quarter growth was impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges. We continue to be confident in the strength of our people, our brands, and our business, and reaffirm our full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth.”
Portfolio growth was led by recently acquired Gin Mare and Diplomatico brands, which collectively increased reported net sales 2%, New Mix RTD which sales explode 52%, el Jimador, whose sales grew 27%, and Jack Daniel's Tennessee Apple, which reported net sales growth of 49%.
Reported net sales for Whiskey products declined 1% (flat organic) led by Woodford Reserve and Gentleman Jack due to an estimated net decrease in distributor inventories, partially offset by the growth of Jack Daniel’s Tennessee Apple and Jack Daniel’s super-premium expressions such as Jack Daniel’s Sinatra and Jack Daniel’s Bonded. While reported net sales of Jack Daniel’s Tennessee Whiskey was flat, the brand led the company’s organic growth (+2%) even as it was negatively impacted by an estimated net decrease in distributor inventories in the United States.
Ready-to-Drink3 (RTD) growth continued to be driven by consumer preference for convenience and flavor, the company said.