Brown-Forman Corporation (NYSE: BF.B), a manufacturer, bottler, importer, exporter and marketer of a range of alcoholic beverage brands, today, reported that its second-quarter profit rose due to cost cuts and higher prices. The company also raised its full-year earnings outlook.
Brown-Forman, which owns brands such Jack Daniel’s Tennessee Whiskey and Don Eduardo Tequila, reported net sales of $1.013 billion for the quarter ended October 31, 2012, flat compared to the same period in the previous year. The company said that net sales growth in the quarter were negatively impacted by the giveback associated with first quarter trade buy-ins in advance of price increases, exchange rate and the absence of Hopland-based wines.
BF.B’s reported operating income for the quarter rose7% to $262 million. The company reported second-quarter net income of $173 million, or $0.80 per share, compared to $157.6 million, or $0.73 per share reported for the same period in the previous year. Analysts were expecting BF.B to report earnings of $0.78 per share for the quarter.
Paul Varga, CEO of Brown-Forman, said that the company’s brands continue to deliver strong and balanced underlying growth in an uncertain global environment. Varga said that the company is pleased with the balance in both geographic and portfolio mix, as well as the fact that its gross margin expansion has benefited from volume gains, higher prices and lower costs.
Following the strong second-quarter results, the company also raised its fiscal 2013 earnings forecast. The company now expects fiscal 2013 earnings to be between $2.58 per share and $2.70 per share, compared to previous guidance range of $2.40 per share to $2.67 per share.
Despite raising fiscal 2013 earnings outlook, Brown-Forman shares have edged lower in trading today. At last check, the stock was trading 0.60% lower at $68.33.
Year-to-date, BF.B shares have fallen more than 14%, underperforming the S&P 500.
Recent Comments