Brown-Forman’s net income slides to £179.49 million in fiscal Q2

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Dec 8, 2020
  • Brown-Forman’s net income slides to £179.49 million in the second quarter.
  • The spirits maker reports better than expected sales in fiscal Q2.
  • The U.S. firm increased its cash dividend for 37th consecutive year in November.

Brown-Forman Corp (NYSE: BF.B) said on Tuesday that its profit slid more than expected in the fiscal second quarter. Its sales, however, topped analysts’ estimates in Q2.

Shares of the company tanked more than 1.5% in premarket trading on Tuesday but recovered almost the entire intraday gain on market open. Including the price action, Brown Forman is now trading at £59.35 per share versus a year to date low of £34.76 per share in March.

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The spirits seller’s stock had started the year at a per-share price of £50.15. Learn more about how to pick winning stocks.

Brown-Forman’s Q2 financial results versus analysts’ estimates

The owner of prominent brands like Jack Daniels said its net income in the second quarter printed at £179.49 million that translates to 37.39 pence per share. In the same quarter last year, it had posted a higher £210.91 million of net income or 44.13 pence per share.

The spirits seller said that it generated £736.68 million of sales in the recent quarter versus the year-ago figure of a slightly higher £739.67 million. According to FactSet, analysts had forecast the company to record £723.74 million of sales in the second quarter. Their estimate for per-share earnings in Q2 stood at 37.39 pence per share.

At £302.15 million, cost of sales saw a 10% annualised growth in the recent quarter. Brown-Forman registered a 15% growth in its wine sales versus the comparable quarter of last year. Vodka sales, the company added, noted a 15% decline in Q2 sales.

In separate news from the U.S., the American multinational toy manufacturing company, Mattel Inc. published estimates-beating quarterly results on Tuesday.

Other prominent figures in Brown-Forman’s earnings report

Other prominent figures in the Louisville-based company’s earnings report on Tuesday include a 3% year over year decline in sales at its Jack Daniels brands. It was partially offset by a 5% annualised growth in Tequila sales. Brown-Forman also said that its whiskey sales in the second quarter came in 1% lower while premium bourbons sales climbed by 18% in Q2.

Last month, Brown-Forman increased its cash dividend for the 37th consecutive year. The U.S. company performed largely upbeat in the stock market last year with an annual gain of close to 40%.

At the time of writing, it is valued at £28 billion and has a price to earnings ratio of 39.48.

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