Brown Forman reports strong underlying growth for full year
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Brown Forman reports strong underlying growth for full year

Premium spirits supplier Brown Forman reported financial results for its fourth quarter of 2017, as well as the full year. Although the company’s net sales declined 5% during the quarter, and 3% during the year, the underlying figures were much stronger (+4% and +3%, respectively).

Brown Forman’s share price is up 10% this year so far

brown forman0906

SOURCE: Yahoo Finance

The standout performers throughout the year were the company’s “super- and ultra-premium whiskey brands”, which experienced incredible underlying sales net growth (amongst the most notable, Woodford Reserve, at +19%). The company also saw strong results for its Herradura and el Jimador tequila brands, which experienced ‘double-digit’ growth in the U.S. market.

The company’s CEO, Paul Varga, said:

“Fiscal 2017 was another year of strong underlying growth and excellent progress in positioning Brown-Forman for continued gains in the years ahead. This year’s results translate into the tenth straight year of growth in underlying net sales and operating income, with fiscal 2017’s underlying operating income growth of 7% approximating the 10-year average of 8%.

“Given the acceleration we experienced in the second half of the year, the investments we continue to make behind the business, and the expectation of improved contribution from innovation next year, we are forecasting another strong year in fiscal 2018, with mid-single digit underlying net sales growth and operating expense leverage driving 6-8% growth in underlying operating income.”


Dominion holds Brown Forman Corporation in its Global Trends Luxury Fund.

If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.