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
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.
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