- Sales in fiscal Q2 – to end of October – decline by 1% to US$1.11bn
- For financial first half, top line inches up 1% to $2.14bn
- US down 5% in H1, ‘Travel Retail’ comes in flat
- Twelve months to end of April 2024 forecast to deliver sales rise of between 3% and 5%
Brown-Forman has trimmed its sales forecast for the current financial year after posting a slight dip in the most recent quarter.
Sales from the three months to the end of October – Brown-Forman’s fiscal Q2 – finished down 1% on the corresponding period a year ago, with the group leaning on Q1’s +2% top-line showing for its 1% half-year rise. A subsequent revision for the full year was issued, from the previous 5%-to-7% sales increase pegged to between 3% and 5%.
The company's emphasis of normalisation in spirits consumption was emphasised by its figures in the US, where sales fell 5% on the same six-month period a year ago, when the country delivered an 11% top-line jump. Similarly, performance in the global travel retail channel was flat, compared to H1's 67% leap last year.
Turning to the brand portfolio, Jack Daniel's Tennessee Whiskey slipped by 2% in both value and volume in the six months, although the flagship's Apple extension soared on both fronts. Staying with whiskey and higher-end marks Gentleman Jack and Woodford Reserve both came in down low-to-mid single digits, although again Brown-Forman blamed the "exceptionally high comparisons" for the pair a year earlier. In Tequila, meanwhile, combined sales for Herradura and El Jimador slipped by 1% in the half year as the latter's price rises earlier in 2023 helped to offset the former's 9% sales slide.
Finally, Finlandia, which makes its last appearance following the vodka brand's divestment earlier this year to Coca-Cola HBC, finished with a relative flourish, climbing 3%.
"While we grew at a slower pace than anticipated, we delivered strong gross margin expansion and continued to invest strongly behind our brands," said CEO Lawson Whiting. "We continue to believe our premium portfolio and broad geographic footprint will position us for accelerated growth in the second half of the fiscal year."
As of today, 6 December, Brown-Forman's market capitalisation totalled $25.87bn.
Brown-Forman’s official H1 fiscal-2024 results statement.
Click here for a company presentation on the six-month performance.
