Alcoholic beverage maker Brown-Forman Corp. (BFA,BFB) on Wednesday reported a 37 percent decline in profit for the fourth quarter from last year, when results benefited from a gain on sale of the Hopland-based wine business. Both earnings and revenue for the quarter missed analysts' estimates.
Looking ahead to fiscal 2013, the company said it expects a continuation of fiscal 2012's strong underlying trends, with net sales and operating income growth in the high single digits.
Paul Varga, Chief Executive Officer of Brown-Forman, said, "After several years of partially absorbing cost increases, we are planning for price increases to be a larger contributor to our total revenue growth, covering cost inflation and improving our relative price positions in the marketplace."
Louisville, Kentucky-based Brown-Forman noted that year-on-year comparisons for the fourth quarter were negatively impacted by the absence of the gain on sale and associated profits from the Hopland-based wine business, as well as foreign exchange, for a combined net impact of about $0.36 per share.
Operating income declined 32 percent on a reported basis, but increased 13 percent on an underlying basis.
The company's fourth-quarter net income was $104.5 million or $0.73 per share, down from $165.4 million or $1.13 per share in the prior-year period.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude one-time items.
However, net sales for the quarter grew 1 percent to $801.3 million from $791.3 million in the year-ago period, with underlying sales growth of 10 percent. Analysts had a consensus estimate of $804.94 million.
For fiscal 2012, Brown-Forman's net income declined to $513.2 million or $3.56 per share from $571.6 million or $3.92 per share in the previous year. Net sales for the year grew 6 percent to $3.61 billion from $3.40 billion in the prior year.
Analysts expected the company to earn $3.60 per share for the year on revenues of $3.50 billion.
Underlying sales for the year rose 9 percent, with each of the company's twelve largest markets growing underlying sales. Sales growth was led by a 12 percent increase in the Jack Daniel's trademark.
Varga said, "Underlying net sales and operating income accelerated in fiscal 2012 to pre-2008 levels. We believe this is due to the strength of the Jack Daniel's trademark and our portfolio of premium brands, our heightened focus on innovation, continued route-to-consumer investments, and the hard work and creativity of our people."
Looking ahead to fiscal 2013, Brown-Forman expects a continuation of fiscal 2012's strong underlying trends, with net sales and operating income growth in the high single digits, and earnings per share of $3.60 to $4.00. The earnings outlook includes an anticipated negative impact from foreign exchange of $0.11 per share.
Analysts expect the company to earn $3.98 per share for the year.
BFB closed Tuesday's trading at $84.74, up $0.74 on a volume of 180,900 shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.