Jack Daniels maker, The Brown-Forman Corporation, reported a 3% sales increase in the third quarter of its fiscal 2019, ending 31 January 2019, to $904 million, compared to the same period the year before.
The company estimates that underlying net sales growth in the third quarter was negatively impacted by one percentage point due to lower net prices to distributors in certain markets to offset the incremental cost of tariffs.
In the quarter, reported operating income grew 4% to $320 million (4% on an underlying basis) and diluted earnings per share grew 20% to $0.47.
For the year-to-date, the company delivered solid, broad-based growth around the world, with the strongest results coming from the emerging markets, as well as continued mid-single digit growth in the developed world.
The company estimates that year-to-date underlying net sales growth was negatively impacted by almost one percentage point due to tariff-related lower net prices.
Year-to-date reported operating income grew 2% to $916 million (4% on an underlying basis) and diluted earnings per share of $1.40 increased 12%.
“Our portfolio of premium spirits brands delivered solid rates of sustained sales growth, led by the strength of our bourbon and tequila brands, as well as the international expansion of the Jack Daniel’s trademark,” Lawson Whiting, Chief Executive Officer, said.
The Jack Daniel’s family of brands grew underlying net sales 4% (2% reported), including 2% underlying net sales growth (flat reported) for Jack Daniel’s Tennessee Whiskey.
Its Woodford Reserve brand saw underlying net sales grow by 24% (21% reported).
“We remain on track to deliver another strong year of results as cost discipline helped offset some of the large burdens we are absorbing due to the retaliatory tariffs on American whiskey.
“The growth opportunity for our brand portfolio remains significant, and our teams around the world are executing on our long-term growth strategy.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.