Brown-Forman Corporation (NYSE:BFA) (NYSE:BFB) today reported financial results for its third quarter and the first nine months of fiscal 2013 ended January 31, 2013. Reported net sales increased 7% in the quarter 1 to $1,027 million (+8% on an underlying basis 2). Reported net sales growth was negatively impacted by the absence of Hopland-based wines, offset by favorable foreign exchange. Reported operating income increased 15% in the quarter to $237 million (+14% on an underlying basis). Diluted earnings per share in the quarter increased 18% to $0.73 compared to $0.62 in the prior year period.
For the first nine months of the year, reported net sales increased 4% (+8% on an underlying basis), reported operating income increased 13% (+13% on an underlying basis), and diluted earnings per share increased 18% to $2.22 compared to $1.89 in the prior year period.
Paul Varga, the company’s chief executive officer said, “We continue to be pleased with our top-tier results in this well-performing industry. Our third quarter and year-to-date results reflect the excellent geographic breadth of our company, as well as improved portfolio and volume/margin balance. Given the momentum we observe today for the North American whiskey category, emerging markets, and premium-priced spirits generally, we believe Brown-Forman is positioned well for continued strong growth."
Year-to-Date 2013 Highlights
- Underlying net sales increased 8%, driven by broad-based geographic gains and brand strength, with constant currency net sales 3 up 5%
- Price/mix contributed three points to net sales growth
- Jack Daniel’s family of brands grew net sales 10%
- The company’s super and ultra-premium whiskey brands grew net sales 19%
- El Jimador’s family of brands grew net sales 7%
- Finlandia’s family of brands grew net sales 5%
- Underlying operating income increased 13%, driven by strong top-line growth, gross margin expansion, and operating expense leverage