Brown-Forman up 10 per cent in Australia
Brown-Forman has reported its financial results for its third-quarter and the first nine months of its 2018 financial year, ended January 31, 2018.
Overall the company reported that its net sales for the quarter increased by nine per cent to US$878m compared to the same period last year and reported operating income for the quarter increased 11 per cent to $304m.
For the first nine months of the fiscal year, the company’s reported net sales increased by nine per cent to $2.5bn and reported operating income increased 15 per cent to $894m.
Brown-Forman also reported that underlying net sales in Australia increased by 10 per cent and while the company did not detail the primary drivers for that growth IRI data indicates the company has benefited from its RTD innovation. IRI’s MAT to 4 February 2018 shows that Jack Daniel’s American Serve, Double Jack and Jack Daniel’s RTDs were all in the top 10 growth RTDs.
Speaking about the global result, Paul Varga, the company’s Chief Executive Officer said: “Brown-Forman’s business momentum continued through the third quarter, resulting in year-to-date underlying net sales and operating income growth of 7 per cent and 11 per cent, respectively, and even stronger on a reported basis.
“The results were well-balanced by geography and driven by 8 per cent underlying net sales growth for our Jack Daniel’s led American whiskey portfolio. Our accelerated rates of growth keep us on track to deliver high quality, top-tier results in fiscal 2018.
“We are reaffirming our underlying outlook for net sales growth of 6-7 per cent and operating income of 8-9 per cent, and adjusting our EPS range to account for tax reform and related items.”
Global highlights for Brown-Forman’s year-to-date include five per cent growth for Jack Daniel’s Tennesse Whiskey, 22 per cent growth for Woodford Reserve and 20 per cent growth for Herradura.