Thursday, March 25, 2010

Brown Forman (BF-B) Earnings 3Q2010

Brown Forman released earnings on March 10, 2010.

The company's diluted EPS declined 10% to $0.73

BF-B reported a decline in operating income by 2% to $147M

Net sales increased by 10% for the FY 3Q, while underlying sales were actually up only 2%

Gross profits were up 11% on a reporting basis and up 3% on an underlying basis

BF-B reported that strong underlying net sales gains for Brown-Forman’s ready-to-drink brands, as well as growth for Gentleman Jack, Jack Daniel’s, and el Jimador, were partially offset by underlying net sales declines of Southern Comfort, Finlandia, and some agency brands.

With the economy showing improvements and discretionary income likely to be on the rise, BF-B's ready made drinks and customers returning to higher shelf drinks could provide weak growth in the coming quarter.

BF-B will be monitored closely, at this point it is reaching a sell point.

Update to come.

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