This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Brown-Forman Reports Strong First Half Results

Brown-Forman Corporation (NYSE:BFA) (NYSE:BFB) today reported financial results for its second quarter and the first half of fiscal 2014 ended October 31, 2013. The company’s reported net sales grew by 6% to $1,079 million in the quarter 1, and increased 8% on an underlying basis 2. Reported operating income grew 19% to $311 million, and increased 21% on an underlying basis. Diluted earnings per share in the second quarter increased 19% to $0.96 compared to $0.80 in the prior year period. For the first six months of the year, reported net sales increased 4% (+7% on an underlying basis), reported operating income increased 9% (+13% on an underlying basis), and diluted earnings per share increased 9% to $1.62.

Paul Varga, the company’s chief executive officer said, “Fueled by the Jack Daniel’s trademark, the company’s second quarter and first half results were very strong. We continued to generate an excellent balance of geographic growth, including strong growth in the emerging markets.”

Varga added, “We are particularly pleased with Brown-Forman’s results in light of recent industry commentary around a slowdown in global spirits momentum, and we are reaffirming our expectations for excellent full year growth in underlying operating income.”

Year-to-Date Fiscal 2014 Highlights
  • Underlying net sales increased 7% year-to-date:
    • Jack Daniel’s trademark grew underlying sales 10%
    • Emerging markets underlying sales grew 7% (6% reported, 6% constant currency)
    • Price/mix contributed over 3% points to underlying sales growth, and led to a 100bps expansion in reported gross margins
    • Super-premium whiskey brands grew underlying sales by 18%, including 27% growth from Woodford Reserve
    • Herradura and el Jimador grew underlying sales by 7% and 2%, respectively
  • Underlying operating income increased 13%

Year-to-Date Fiscal 2014 Performance

The company’s underlying net sales growth of 7% in the first half of fiscal 2014 was driven by geographically balanced revenue growth. Emerging markets underlying growth rate of 7% was powered by continued strength across a wide range of countries, including China, Brazil, Russia, Thailand, Turkey and India, with each country delivering double-digit growth. Mexico and Poland were down low single-digits, dampening the overall rate of growth in the emerging markets.

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs