Benefiting from increased prices as well as consistent demand for its alcoholic beverage brands, including Jack Daniel's whisky, Woodford Reserve bourbon and el Jimador tequila, Brown-Forman Corp. on Wednesday exceeded Wall Street projections for quarterly revenue.
Early trading saw an increase of roughly 2% in the company's shares.
Spirit producers have hiked prices across the board in an effort to safeguard their profits from rising costs and a stronger US dollar.
According to Refinitiv statistics, Brown-Forman's revenue increased 5% to $1.05 billion for the fourth quarter ended April 30, above analysts' consensus estimates of $990.3 million.
The company struggled with rising costs related to the supply chain, raw materials, and packaging despite several price increases, which caused its gross margin to drop to 60.8% for the quarter from 62.8% a year earlier.
Contrarily, a number of consumer industries, notably retailers and beverage manufacturers, are counting on lower input costs, lower inventories, and prolonged price increases to accelerate their margin recovery.
Following a year of supply chain interruptions, distributors in regions including Germany, Australia, and Mexico restocked Brown-Forman's wine and spirits, which helped the Louisville, Kentucky-based company.
It had a quarterly profit of 43 cents per share, which was in line with analysts' projections.
The performance of the American bourbon whisky producer was comparable to that of its competitors Anheuser-Busch InBev, Molson Coors Beverage Co, and Constellation Brands Inc., all of which reported positive quarterly results due to strong demand for their more expensive goods.
For the entire year, Brown-Forman forecasts organic net sales to increase between 5% to 7%.
(Source:www.marketscreener.com)
Early trading saw an increase of roughly 2% in the company's shares.
Spirit producers have hiked prices across the board in an effort to safeguard their profits from rising costs and a stronger US dollar.
According to Refinitiv statistics, Brown-Forman's revenue increased 5% to $1.05 billion for the fourth quarter ended April 30, above analysts' consensus estimates of $990.3 million.
The company struggled with rising costs related to the supply chain, raw materials, and packaging despite several price increases, which caused its gross margin to drop to 60.8% for the quarter from 62.8% a year earlier.
Contrarily, a number of consumer industries, notably retailers and beverage manufacturers, are counting on lower input costs, lower inventories, and prolonged price increases to accelerate their margin recovery.
Following a year of supply chain interruptions, distributors in regions including Germany, Australia, and Mexico restocked Brown-Forman's wine and spirits, which helped the Louisville, Kentucky-based company.
It had a quarterly profit of 43 cents per share, which was in line with analysts' projections.
The performance of the American bourbon whisky producer was comparable to that of its competitors Anheuser-Busch InBev, Molson Coors Beverage Co, and Constellation Brands Inc., all of which reported positive quarterly results due to strong demand for their more expensive goods.
For the entire year, Brown-Forman forecasts organic net sales to increase between 5% to 7%.
(Source:www.marketscreener.com)
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