FDBusiness.com

Brown-Forman Delivers Solid Underlying Growth

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

Brown-Forman Delivers Solid Underlying Growth

Brown-Forman Delivers Solid Underlying Growth
June 13
09:40 2016

US-based drinks group Brown-Forman has reported a 2% drop in net sales to $4.01 billion but a 5% rose on an underlying basis for the year ended April 30 2016 as foreign exchange negatively impacted reported net sales growth by six points.

Reported operating income grew 49% to $1.53 billion, or 3% excluding the impact from the sale of Southern Comfort and Tuaca for $543 million. On an underlying basis, operating income increased by 8%.

The company’s brands delivered another solid year of growth in developed markets, which helped offset the economic slowdown in the emerging markets and Global Travel Retail. Underlying net sales grew 6% (3% reported) in the United States, 6% (-3% reported) in developed markets outside of the United States, and 4% (-10% reported) in the emerging markets.

BrownFormanLogoPaul Varga, chief executive of Brown-Forman, comments: “Fiscal 2016 was another successful year at Brown-Forman. We delivered solid underlying growth in sales and operating income, led by the Jack Daniel’s family of brands. We also made important changes to our portfolio of brands that we believe position us well for the long-term. Against a favorable backdrop of global interest in American whiskey, we invested capital to expand our capacity and we returned approximately $1.4 billion to our shareholders during the year. We believe that our strong free cash flow and capital efficiency positions us to deliver top-tier returns for our shareholders.”

Since the year end, Brown-Forman has completed the acquisition of the GlenDronach, BenRiach, and Glenglassaugh single malt Scotch brands for $408 million.

According to Brown-Forman, significant uncertainty around the global economic environment and its potential impact on the business makes it difficult to predict future results. However, assuming no further deterioration in the global economy in fiscal 2017, particularly in the emerging markets, the company anticipates underlying net sales growth of 4% to 6%, led by its premium American whiskey brands, and underlying operating income growth of 7% to 9%.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements