Jack Daniels-owner Brown-Forman Corporation has reported financial results for its first quarter of fiscal 2022 with net sales of €764 million ($906 million) increasing by 20% compared to the same prior-year period.
In the quarter, the drinks firm's operating income decreased 25% to $289 million.
It's diluted earnings per share declined 41% to $0.40 due to the gain from the sale of the Canadian Mist,Canadian Mist, and Collingwood brands in the prior year.
Lawson Whiting, Brown-Forman’s president and chief executive officer stated, “These results were driven by the strength of our portfolio, which benefited from the re-opening of the on-premise, sustained at-home consumption, and continued premiumization trends.”
Brand Reported Results
Jack Daniel’s family of brandsnet sales growth was propelled by Jack Daniel’s Tennessee Whiskey which benefited from higher volumes globally and favorable channel mix in the United States related to the on-premise reopening, the company said.
Jack Daniel’s Tennessee Apple’s net sales growth was fueled by the ongoing international launch.
Premium bourbons, led by Woodford Reserve and Old Forester, maintained double-digit net sales growth driven by strong volumetric gains in the United States, it added.
The tequila portfolio was led by double-digit net sales growth for Herradura and el Jimador. In particular, Herradura benefited from resurgent demand in Mexico following disruption in the prior-year period, the financial results showed.
These gains were partially offset by lower volumes of New Mix in Mexico reflecting a difficult comparison to the same prior-year period when volume and shelf space benefited from a temporary supply chain disruption in the beer industry.
According to the report, strong net sales growth in the United States was primarily driven by double-digit growth from Jack Daniel’s Tennessee Whiskey, premium bourbons, and tequilas.
Developed international markets maintained double-digit net sales growth driven by broad-based growth led by Germany, France, Korea, and Spain.
The company said that emerging markets returned to double-digit net sales growth propelled by volume gains across most markets, partially offset by declines throughout most countries in Southeast Asia.
Net sales in Travel Retail increased primarily due to a favourable comparison to the same prior-year period, which was impacted by significant disruption due to COVID-19 travel bans and restrictions.
Looking ahead Whiting said, “While we are optimistic the operating environment will continue to improve, we are closely monitoring the potential volatility associated with the evolving pandemic and continued supply chain disruptions.
"Backed by the strength of our brands and our people, we are confident in our ability to manage our business for the long term,” he added.