The Jack Daniel’s producer boosted its fiscal 2022 net sales outlook from mid-single digit growth to high-single digit growth.
The company’s net sales increased 1% year-on-year in Q2 of fiscal 2022, but operating income decreased 2% to $322 million.
For the first six months of the fiscal year, net sales are up 9% to $1.9 billion. Operating income decreased 15% to $611 million as a result of the sale of its of the Canadian Mist, Early Times, and Collingwood brands in the prior year.
Brown-Forman’s share price is down by more than 5% in New York this morning following the results announcement.
“Despite the many challenges and ongoing uncertainties created by the pandemic, Brown-Forman’s business remains incredibly strong,” said Lawson Whiting, Brown-Forman’s president and chief executive.
“We are pleased with the strong first half of the fiscal year and remain confident in our ability to deliver sustainable long-term growth, particularly given consumers’ increasing preference for premium spirits and our strength in the growing American whiskey and tequila categories.”
Brown-Forman reported that Jack Daniel’s sales are up 9% year-on-year in the first half of fiscal 2022, while premium bourbons – led by Woodford Reserve and Old Forester – maintained double-digit net sales growth.
A tequila portfolio led by Herradura and el Jimador was up 16%.
“While volatility and uncertainty persists in the operating environment due to COVID-19 and supply chain disruptions, we remain confident in our growth momentum and have revised our full-year underlying net sales outlook from mid-single digit to high-single digit growth,” said the company.
“Currently, we are managing through the impact of global supply chain disruptions, including glass supply, and have deployed a number of risk mitigation strategies to address the various constraints on our business. While we expect supply chain disruptions to persist throughout the fiscal year, we believe the impact will become less significant in the second half of the year.”
