Brown-Forman Q4 Profit Drops; Sees Mid-single Digit Underlying Net Sales Growth

(RTTNews) - Brown-Forman Corp. (BFA, BFB) reported that its net income for the fourth-quarter dropped to $144 million or $0.37 per share from $522 million or $1.30 per share in the prior year.

Quarterly reported net sales declined 5% to $694 million from last year, while it was up 4% on an underlying basis.

For fiscal year 2018, the company anticipates earnings per share of $1.80 to $1.90, which includes a modest negative impact from a higher tax rate, foreign exchange headwinds and setting up owned distribution in Spain; Underlying operating income growth of 6% to 8%.

It projects annual underlying net sales growth of 4% to 5%, led by the Jack Daniel's family of brands, premium bourbon and tequila brands, and helped by new products such as the launch of Jack Daniel's Tennessee Rye and Slane Irish Whiskey, as well as seeding of single malt scotch brands.

Furthermore, the company is targeting three year cost savings of $100 million (FY18-FY20) through better leveraging prior investments, including production capabilities, route to market initiatives, brand innovation, homeplace assets, and people.