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Brown-Forman Corporation (NYSE:BF.A) trickled higher in early trading after the spirits and wine company reported FQ4 results and set guidance for FY24.
For Q4, Brown-Forman (BF.A) reported net sales increased 5% to $1.0B. Organic sales rose 4% during the quarter.
For the full fiscal year, the Jack Daniel’s family of brands’ reported sales growth of 4% led by Jack Daniel’s Tennessee Whiskey in international markets and the Travel Retail channel. Organic sales for the brand were up 9%. Higher pricing and an estimated net increase in distributor inventories in certain emerging and developed international markets were noted to have positively impacted reported sales.
For the full fiscal year, Premium bourbons saw 23% sales growth, propelled by strong double-digit net sales growth from Woodford Reserve and Old Forester. Organic sales were up 24% for premium bourbons, driven by stronger consumer demand in the U.S. Gains for Woodford Reserve were partially due to the estimated net increase in distributor inventories, while Old Forester’s growth was driven by higher volumes and pricing.
Tequila portfolio increased 10% for the fiscal year with el Jimador and Herradura both delivering double-digit reported net sales growth. Meanwhile, Ready-to-Drinks growth continued to be driven by consumer preference for convenience and flavor. New Mix gained market share in Mexico as reported net sales grew 53% (+45% organic), fueled by higher volumes and prices.
CEO update: “We were able to build on last year’s double-digit organic net sales growth by continuing the premiumization of our portfolio, investing boldly in our brands, building new strategic relationships, developing and supporting our talented people, and honoring our values.”
Looking ahead, Brown-Forman (BF.A) expects organic net sales growth in FY24 in the 5% to 7% range and organic operating income growth in the 6% to 8% range. Capital expenditures are planned to be in the range of $250M to $270M.
Shares of Brown-Forman (BF.A) rose 0.15% premarket to $63.70.
