Brown-Forman - BFA - Strong First Half Results and Raises Full Year Outlook
12/5/2012 12:20:28 PM
Brown-Forman Corporation (NYSE:BFA) reported financial results for its second quarter and the first half of fiscal 2013 ended October 31, 2012. Reported net sales were flat1 in the quarter at $1,013 million, and increased 6% on an underlying basis. As expected, reported net sales growth in the quarter was negatively impacted from the giveback associated with first quarter trade buy-ins in advance of price increases, as well as the impact from foreign exchange and the absence of Hopland-based wines. Reported operating income in the quarter increased 7% to $262 million, up 9% on an underlying basis. Diluted earnings per share for the second quarter increased 11% to $0.80 compared to $0.73 in the prior year period. For the first six months of the year, underlying sales increased 8%, underlying operating income increased 12% (+2% and +12%, respectively on a reported basis), and diluted earnings per share increased 18% to $1.49.
BFA - Fiscal Year 2013 Outlook
At this stage in the fiscal year, BFA is raising its fiscal 2013 earnings outlook to $2.58 to $2.70 from $2.40 to $2.67. While there continues to be uncertainty in the global economy going into the important holiday selling season, the company continues to expect high single-digit growth in underlying sales and has increased its expectations for operating income growth to low double digits. Leverage to the operating income line is expected to come primarily from gross margin expansion, although rates of improvement will moderate in the back half of the year.
About Brown-Forman Corporation - BFA
For more than 140 years, Brown-Forman Corporation (BFA) has enriched the experience of life by responsibly building fine quality beverage alcohol brands, including Jack Daniel’s Tennessee Whiskey, Southern Comfort, Finlandia, Jack Daniel’s & Cola, Canadian Mist, Korbel, Gentleman Jack, el Jimador, Herradura, Sonoma-Cutrer, Chambord, New Mix, Tuaca, and Woodford Reserve. Brown-Forman’s brands are supported by nearly 4,000 employees and sold in approximately 160 countries worldwide.