Create a free account to continue

Jack Daniel's Maker See Profits Rise

Brown-Forman Corp. posted a 5 percent increase in second-quarter profit Thursday due to strong international sales.

NASHVILLE, Tenn. (AP) -- Brown-Forman Corp. posted a 5 percent increase in second-quarter profit Thursday as strong international sales for the maker of Jack Daniel's Tennessee Whiskey offset U.S. performance dragged down by poor sales to bars and restaurants.

Brown-Forman, whose other brands include Southern Comfort and Findlandia, also raised its full-year earnings per share guidance to $3.18 to $3.42. The previous forecast ranged from $2.98 to $3.38 per share.

"Based on our first-half success, we have more confidence in our outlook for the remainder of the year and reflected that in our guidance," Brown-Forman CEO Paul Varga said in a statement.

The company, based in Louisville, Ky., said international sales for its flagship Jack Daniel's Tennessee Whiskey brand grew by 8 percent in the second quarter, while U.S. sales declined by 1 percent.

Net sales for its entire Jack Daniel's lineup grew by 5 percent for the first half of its fiscal year, it said. Reported sales for Jack Daniel's ready-to-drink products surged by 26 percent for the six months.

The company reported that sales for Finlandia vodka fell by 3 percent in the six months, while Southern Comfort sales slipped by 2 percent.

The company reported surging sales in Australia, Mexico, the United Kingdom, Germany and Turkey that compensated for soft sales in the U.S. and Russia.

The company earned $154 million, or $1.05 per share, in the three months ending Oct. 31. That's up from $147.3 million, or 99 cents per share, in the year-ago period.

Analysts expected $1 per share, according to Thomson Reuters.

Quarterly net sales were up 1 percent at $905.7 million.

More in Supply Chain