Beverage giant Brown-Forman Corporation (NYSE: BF.B) reported financial results for its third quarter and nine months ended January 31, 2024. Third-quarter reported net sales decreased 1%1 to $1.1 billion compared to the same prior-year period. In the quarter, reported operating income increased 116% to $373 million (+5% on an organic basis) and diluted earnings per share increased 189% to $0.60.
For the first nine months of the fiscal year, the company’s reported net sales increased 1% to $3.2 billion compared to the same prior-year period. Year-to-date reported operating income increased 25% to $1.0 billion and diluted earnings per share increased 32% to $1.58.
To quote CEO Lawson Whiting, “In a year with significant uncertainty and complexity in the spirits industry, Brown-Forman has demonstrated continued resilience and agility following two years of double-digit organic net sales growth. As industry trends have normalized, we have expanded our gross margin, executed our strategic priorities, and invested behind the business. As we look to the end of the fiscal year, we remain confident in the strength of our portfolio and our ability to deliver long-term growth.”
The recently acquired brands, Gin Mare and Diplomatico, drove the significant increase in the Rest of Portfolio's reported net sale growth of 79% led by the Developed International markets and the United States.
BF.B shares dumped $4.48, or 7.2%, to $56.41.
