Brown-Forman's fiscal Q1 earnings climbed 6% to US$118.1M as revenue grew 13% to US$840.3M, driven by double-digit growth in Jack Daniel's lineup, strong overseas sales
August 31, 2011
– Brown-Forman Corp. said Wednesday its first-quarter profit rose by 6 percent as its flagship Jack Daniel's lineup posted double-digit revenue growth and the liquor company posted strong sales overseas.
The company reaffirmed its full-year earnings projection and said it expects to benefit from brand development and wider distribution to help fuel improved net sales growth.
Louisville-based Brown-Forman reported a double-digit increase in advertising spending in the latest quarter, much of it to back the introduction of its Jack Daniel's Tennessee Honey product.
Brown-Forman said its Jack Daniel's brand lineup had a 15 percent revenue gain for the quarter, on a constant currency basis. It reported higher volumes for its Chambord vodka, Herradura, Sonoma-Cutrer and Woodford Reserve brands.
Finlandia vodka revenue was flat for the period on the same constant currency basis, while several other leading brands had declines.
Its Southern Comfort brand continued to struggle with an 11 percent drop in revenue for the overall brand. The company also reported revenue declines for its el Jimador, Canadian Mist and Korbel brands.
For the three months ended July 31, the company reported net income of $118.1 million, or 81 cents per share. That's up from $111.4 million, or 76 cents per share, a year ago.
Net sales rose 13 percent to $840.3 million from $744.9 million a year ago.
Analysts expected earnings of 83 cents per share on revenue of $767.2 million.
For the full year, Brown-Forman expects to earn $3.45 to $3.85 per share. Analysts on average expect $3.70 a share for the year.
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