Brown-Forman Corporation, the parent of Jack Daniel's, has posted net sales growth of 5% to $1.8 billion (€1.62 billion) in the first half of its financial year.
Reported net sales benefited approximately 1% due to the net change in distributor inventories related largely to the launch of Jack Daniel’s Tennessee Apple, the company said.
According to its latest financial results, company's year-to-date operating income increased by 1% to $600 million (€540.73 million) and diluted earnings per share increased 5% to $0.97.
In the second quarter, the company’s reported net sales were up 9% to $989 million (€891.31 million) compared to the same period last year.
Reported operating income increased 6% to $352 million (€317.23 million) during the period, while diluted earnings per share rose 14% to $0.59.
“As expected, our results improved during the second quarter," said Lawson Whiting, president and chief executive of Brown-Forman.
"We continue to deliver solid underlying growth from both a geographic and portfolio perspective, despite the uncertain global economic and geopolitical environment."
Jack Daniel’s Family
The United States grew underlying net sales 6% (+10% reported) driven by sustained double-digit growth from its premium bourbons, Woodford Reserve and Old Forester, and double-digit underlying net sales gains in aggregate from its tequilas, Herradura and el Jimador, the group said.
Underlying net sales growth for the Jack Daniel’s family of brands accelerated to mid-single digits for the first half of fiscal 2020 driven by the launch of Jack Daniel’s Tennessee Apple and double-digit growth of Jack Daniel’s RTD (ready to drink).
“Our takeaway trends remain healthy in many major markets as we continue to invest in consumer momentum by absorbing most tariff-related costs," Whiting further added.
"We believe this, coupled with increased investments in advertising and route-to-consumer changes in certain markets, position us well for the next generation of growth.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.