- Three-month sales – to end of July – rise 2% to US$1.04bn
- Quarterly sales in the US slide by 9%
- Top line for fiscal 2024 – to end of April – forecast to finish up between 5% and 7%
Brown-Forman has posted a near-double-digit decline in quarterly sales in the US but has played down the likelihood of a weaker long-term performance in its home market.
For the three months to the end of July, the Jack Daniel’s brand owner saw its domestic sales fall by 9%, although the group top line was up 2% on the corresponding period last year. In subsequent commentary, Brown-Forman flagged a “difficult shipment comparison” having “rebuilt inventory impacted by prior glass supply challenges [in the US]” a year ago.
Jack Daniel's performance in the quarter backed up the explanation: The American whiskey delivered a 2% lift in sales compared to +21% in Q1 fiscal 2023. Elsewhere, Jack's apple-flavoured extension delivered a storming set of numbers - up 52% by value - due partly to its launch in South Korea during the quarter. Tequila brand El Jimador, meanwhile, leapt by just over a quarter thanks in part to higher prices, "particularly in the US".
Of future concern, however, will be the "lower volumes" reported from the Jack Daniel's-branded RTD portfolio - which includes the Jack & Coke co-branded premix - in the UK and Australia.
“As anticipated, our first quarter growth was impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges," said CEO Lawson Whiting. "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.”
Brown-Forman's official Q1 fiscal 2024 results announcement.
Group presentation on three-month performance.
How will 2023 treat Brown-Forman? – CEO Lawson Whiting speaks exclusively to Global Drinks Intel
