Brown-Forman has reported a 'solid fiscal 2019 results,' according to its latest fourth quarter and annual report.
The Jack Daniels owner reported that its net sales increased 2% to $3,324 million, for the year ended April 30, 2019.
For the fourth quarter, the company’s reported net sales increased 1% to $744 million.
The group, "delivered solid underlying net sales growth of 6% after considering the one point drag due to tariff-related price reductions," Lawson Whiting, the company's president and chief executive officer, said in a statement.
"This growth rate is in-line with fiscal 2018, as well as our expectations for fiscal 2020, demonstrating the consistency of our revenue delivery. We believe that delivering sustained, compounding growth is the best way to create value for shareholders over the long term.”
The group said that the underlying net sales gains were driven by growing global demand for American whiskey.
The Jack Daniel’s family of brands grew underlying net sales 4% (+1% reported), including 2% underlying net sales growth (flat reported) for Jack Daniel’s Tennessee Whiskey.
Premium bourbons grew underlying net sales 23% (+19% reported), including 22% underlying net sales growth from Woodford Reserve (+17% reported).
Looking ahead, the alcoholic beverage company 'anticipates' Underlying net sales growth of 5% to 7%.
It also, projected an underlying operating income growth of 3% to 5%.
'The competitive landscape in the developed world remains intense, and retaliatory tariffs on American whiskey have created additional uncertainty around the company’s near-term outlook,' it said in a statement.
The company said that it is assuming tariffs remain in place for all of fiscal 2020.
“Although tariffs and higher input costs will negatively impact our gross margins again this year, we believe we are on track to return to high single digit operating income growth as we move beyond fiscal 2020," Whiting added.
Our growth prospects remain bright as we develop our premium spirits portfolio around the world, led by the Jack Daniel’s family of brands and Woodford Reserve.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.