- Underlying net sales increased 10%, driven by broad-based geographic gains, with constant currency net sales 3 up 14%:
- Price/mix contributed 1% to underlying sales growth in the quarter
- Jack Daniel’s trademark grew net sales 15%, including double-digit growth from Tennessee Honey, resulting from its geographic expansion outside of the U.S.
- Southern Comfort’s family of brands’ net sales declined 1%, while U.S. net sales grew in the quarter
- Finlandia’s family of brands grew net sales 20%
- El Jimador family of brands grew net sales 11%
- Underlying operating income increased 17%, driven primarily by revenue growth, gross margin expansion, and some leverage with operating expenses.
Brown-Forman Corporation (NYSE:BFA)(NYSE: BFB) today reported financial results for its first quarter of fiscal 2013. The company grew reported net sales by 4% to $878.1 million in the quarter 1, a 10% increase on an underlying basis 2. Reported net sales growth benefited from buy-ins related to price increases that were implemented in the quarter, offset by the negative impact from foreign exchange and the absence of Hopland-based wines. Reported operating income increased 19% to $221.7 million, up 17% on an underlying basis. After adjusting for the three-for-two stock split that occurred on August 10, diluted earnings per share for the first quarter increased 27% to $0.69 compared to $0.54 in the prior year period. Paul Varga, the company’s chief executive officer said, “Building from our strong fiscal 2012 results, Brown-Forman is off to a great start in fiscal 2013. Underlying net sales growth of 10% in the first quarter was driven by the continued strength of our Jack Daniel’s trademark as well as improving results from other brands in our premium portfolio.” First Quarter 2013 Highlights