Brown-Forman Sales Up 1%, Net Rises 6%
Brown-Forman Corp. reports net sales for the fiscal second quarter, ended Oct. 31, rose 1% to $1.1 billion (down 1% organically) from a year earlier. Net income in the quarter was $242 million, or 50 cents a share, a 6% advance from a year earlier.
For the fiscal first half, also ended Oct. 31, net sales increased 2% to $2.1 billion (+1% on an organic basis) compared to the same prior-year period. Profit eased 1% to $473 million, or 99 cents a share.
Reported net sales growth was driven by Emerging markets and supported by growth in Developed International markets and the Travel Retail channel, partially offset by declines in the United States.
The recently acquired Gin Mare and Diplomático brands collectively increased the company's reported net sales by 2%, the company said, and New Mix RTD delivered very strong reported net sales growth of 41% (+22% organic).
Jack Daniel’s Tennessee Apple delivered double-digit reported net sales growth of 51% (+52% organic). But that reported net sales growth was partially offset by Jack Daniel’s Tennessee Whiskey’s reported net sales decline of 4% (-2% organic).
Whiskey Sales Decline 2%
Reported net sales for Whiskey products declined 2% (-1% organic). The Jack Daniel's Family of Brands’ reported net sales declined 1% (flat on an organic basis) driven by lower volumes for Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Honey, and Gentleman Jack partially offset by the growth of Jack Daniel’s Tennessee Apple and Jack Daniel’s super-premium expressions led by Jack Daniel’s Sinatra, Jack Daniel’s Bonded Rye, and Jack Daniel’s Single Barrel. With an exceptionally high comparison in the same prior-year period, Woodford Reserve’s reported net sales declined 3% (-3% organic) and Old Forester’s reported net sales declined 5% (-5% organic).
Ready-to-Drink (RTD) growth continued to be led by consumer preference for convenience and flavor. New Mix’s reported net sales increased 41% (+22% organic) boosted by higher prices and volumes. Reported net sales of Jack Daniel’s RTD/RTP portfolio increased 2% (+1% organic) driven by the continued launch of the Jack Daniel’s & Coca-Cola RTD partially offset by lower volumes of Jack Daniel’s & Cola due to the transition.
Reported net sales for the Tequila3 portfolio grew 2% (-1% organic). el Jimador delivered reported net sales growth of 8% (+7% organic) driven by higher prices, particularly in the United States, and higher volumes in Colombia partially offset by lower volumes in the United States and Mexico. Herradura’s reported net sales declined 5% (-9% organic) driven by lower volumes in the United States partially offset by growth in Mexico.
Gin Mare and Diplomático drove the significant increase in Rest of Portfolio’s3 reported net sales growth of 104% (+17% organic).