Brown-Forman (NYSE:BF.B) backed full-year guidance as it reported 3% growth in sales, led by demand for tequila, although operating income dipped 4%.
The maker of Jack Daniels said in the three months ended July 31, net sales rose 3% to $1.0 billion although operating income decreased 4% to $327 million and diluted earnings per share decreased 7% to $0.48.
Lawson Whiting, president and chief executive officer said first growth was “impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges.”
“We continue to be confident in the strength of our people, our brands, and our business, and reaffirm our full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth," Whiting said.
The firm reported broad-based net sales growth across emerging and developed international markets and the travel retail channel.
Sales declined in the US, reflecting an estimated net decrease in distributor inventories, partially due to cycling against a significant inventory rebuild during the same period last year.
Two products that stood out were Jack Daniel’s Tennessee Apple where sales soared 49% while sales of el Jimador tequila jumped 27%.
Overall, net sales for whiskey products declined 1% led by Woodford Reserve and Gentleman Jack while tequila sales increased 15% driven by higher prices, particularly in the US and higher volumes in Colombia.