Brown Forman: strong first half results in raised outlook for the year
Brown Forman Corporation released quarterly earnings results for the second quarter of fiscal 2018 this week, demonstrating a strong business that’s had a great first half. As a result, the company has raised its outlook, bringing a smile, as well as a drink, to investors’ lips. For the second quarter, the company saw a 10% rise in net sales against the same period in 2017, and a 19% operating income. Earnings per share also increased by 23% against the second quarter of 2017 to $0.62.
Brown Forman’s share price has risen by 47% this year to date
Source: Yahoo Finance
Paul Varga, Brown Forman's Chief Executive Officer, discussed the results in a press release, saying:
“Brown-Forman’s second quarter and first half results were excellent on both a reported and underlying basis. Against a backdrop of improving economies in the emerging markets, and continued momentum in our categories of focus, our underlying net sales have accelerated nicely due to strong performances from our Jack Daniel’s, Woodford Reserve, Old Forester and Herradura brand families, as well as timing-driven improvements in our used barrel sales. We believe that an ever-improving combination of investment, resource allocation, revenue management, innovation, and geographic expansion are important contributors to our acceleration in fiscal 2018.”
Net sales for the first half of 2018 where up 10% against the previous year, operating income was up 17% and earnings per share were up 24%. As a result of this strong performance, Brown Forman said it now expects underlying net sales of 6% to 7%, and underlying operating income growth of 8% to 9%. It also expects diluted earnings per share between $1.90 and $1.98. Unsurprisingly, the company’s share price rose on the back of the news.
Dominion holds Brown Forman Corporation in its Global Trends Luxury Fund.
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