Brown Forman Corporation (BF.B) released its first-quarter fiscal 2021 results on Sept. 2 before the market opened. Both earnings and revenue surpassed Wall Street's expectations.
Key metrics
The maker of Jack Daniel's and other alcohol products recorded earnings per share of 67 cents in the first quarter, up 73% from the year-ago period. Analysts had predicted EPS of 30 cents. Revenue of $753 million was down 2% year-over-year but surpassed analysts' expectations of $691.2 million.
Brown Forman's President and CEO Lawson Whiting had the following to say:
"Despite being faced with significant ongoing challenges, our business performed well during the quarter though much uncertainty remains in the current environment. We believe we are well positioned to navigate the headwinds we face today and emerge from the COVID-19 environment in a stronger position."
How did the brands fare?
The premium bourbon brands Woodford Reserve and Old Forester witnessed underlying sales growth of 18%.
Tequila brands registered underlying sales growth of 16% on a global basis. The growth was attributable to strong underlying sales growth of el Jimador (up 11%), which more than offset decline in the Herradura net sales (down 16%).
Sales of Brown Forman's non-branded business, which include used barrels, bulk whiskey and contract bottling, dipped 32% courtesy of demand slump as well as lower pricing.
Geographically, sales in the U.S., the company's largest market, rose 3% in the fiscal first quarter, partially driven by the introduction of Jack Daniel's Tennessee Apple. Sales in developed international markets were up 13%, but sales in emerging markets dropped 20%.
Financials and dividend
At the end of quarter, the company had cash and cash equivalents of $908 million and long-term debt of $2.32 billion.
The Board of Directors of the company announced a quarterly cash dividend of $0.1743 per share on Class A and Class B common stock, which would be payable on Oct. 1. This marks the 75th year of dividend payments.
Guidance
Brown Forman pulled its guidance for fiscal 2021.
Disclosure: I do not hold any positions in the stocks mentioned.
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