Brown-Forman profit and sales rise above forecasts, boosted by ‘resurgence’ in Jack Daniel’s Tennessee Whiskey

Brown-Forman Corp. reported fiscal fourth-quarter profit and sales that rose above expectations, as the alcoholic beverages company cited a “resurgence” in demand of its Jack Daniels Tennessee Whiskey. Net income for the quarter to April 30 rose to $151 million, or 31 cents a share, from $120 million, or 25 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 26 cents. Sales grew 22.7% to $996 million, above the FactSet consensus of $832 million. Cost of sales rose 17.8%, or by less than sales, to $370 million, as gross margin improved to 62.9% from 61.3%. For the full fiscal year, sales grew 14% as sales for Jack Daniel’s Tennessee Whiskey jumped 20%, premium bourbons sales increased 17% and tequila sales increased 22%. The company expects continued growth in fiscal 2023, despite global macroeconomic and geopolitical uncertainties. The stock, which was inactive in premarket trading, has gained 3.0% over the past three months while the S&P 500 has slipped 0.2%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.