Brown-Forman hoping for double-digit lift in full year, but Q3 sales up only 5% – results data

Brown-Forman has reported a third consecutive quarter of US$1bn+ in sales, although the group’s growth rate slowed markedly in the most recent three-month period.

Following on from H1’s 17% top-line lift, posted in December, the Jack Daniel’s owner has reported a year-on-year rise of 5% from the three months to the end of January. For the first nine months of fiscal 2023, sales were up 12% on the corresponding period a year ago.

The ongoing recovery of the Global Travel Retail channel was credited with contributing to the year-to-date sales lift, although Brown-Forman also noted that "trends began to normalise" in the US, where nine-month sales were up 4%. Recent price increases also supported the top line, as did "the continued rebuilding of distributor inventories" as the supply chain squeeze softened.

Turning to the performance of the group's brands and higher-end Bourbon Woodford Reserve was the standout, growing its sales by over a third on a 15% volume rise. Jack Daniel's Tennessee Whiskey, Brown-Forman's biggest brand, was up 12% thanks to the price rises and healthy showings in markets outside of the US and in GTR. At home, the American whiskey saw volumes dip "due in part to an estimated net decrease in distributor inventories".

Elsewhere in the portfolio, vodka brand Finlandia was the subject of an impairment charge - its second in 12 months - of $96m. The charge followed a hit of $52m in last year's fiscal Q4, the three months to the end of April 2022. "We believe that these adjustments allow for us to better understand our organic results on a comparable basis," the company said.

Brown-Forman's official Q3 & YTD fiscal-2023 results announcement.

Company presentation on recent performance.

How will 2023 treat Brown-Forman? – CEO Lawson Whiting speaks exclusively to Global Drinks Intel