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Demand for Jack Daniel's whiskey, Finlanda vodka boost Brown-Forman's 3Q profit

Demand for Jack Daniel's whiskey, Finlanda vodka boost Brown-Forman's 3Q profit

Liquor producer Brown-Forman Corp. said Friday its third-quarter profit rose 10 percent from the addition of Casa Herradura premium tequilas along with higher global demand for its flagship Jack Daniel's Tennessee Whiskey line as well as Finlandia vodka.
The Louisville-based distiller said it also benefited from favorable foreign exchange fluctuations but reduced the upper end of its profit range forecast for the full fiscal year.
Its Class B shares fell $2.22, or 3.4 percent, to $63.85 in morning trading Friday.
For the three months ended Jan. 31, Brown-Forman said it earned $116 million (euro76.48 million), or 94 cents a share, compared to $105.1 million (euro69.3 million), or 85 cents per share, in the same period a year ago. The year-ago results included a $6.5 million (euro4.29 million) write-down from the company's sale of its Hartmann luggage division.
Revenue in the most recent quarter rose 16 percent to $877.4 million (euro578.49 million), compared to $754.8 million (euro497.66 million) a year ago.
International markets continued to drive sales for Jack Daniel's, with quarterly growth in the mid-single digits compared to a low-single-digit increase in the United States. The company reported strong double-digit growth in the quarter for its superpremium Gentleman Jack and its Jack Daniel's & Cola.
Finlandia sales grew at a double-digit rate, led by robust growth in Eastern Europe. Global sales for Southern Comfort declined in the quarter, with weakness in U.S. and international markets.
The company said its advertising expenses increased 14 percent to $108 million (euro71.21 million) in the quarter, primarily reflecting investments behind the Casa Herradura brands it acquired in January 2007.
Meanwhile, Brown-Forman narrowed the range of its full-year earnings outlook to $3.42 (euro2.25) to $3.50 (euro2.31) per share, representing growth of 9 percent to 11 percent over the prior year. The prior forecast had been in the range of $3.42 (euro2.25) to $3.54 (euro2.33) per share.


Updated : 2021-02-27 00:47 GMT+08:00