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Jack Daniel's and Southern Comfort producer Brown-Forman saw net sales fall by 11% in the three months to Jan 31, largely through the impact of the strong US dollar reducing the value of export sales.
Adjusting for the impact of foreign exchange fluctuations showed an 8% rise in operating income, the company said.
Reported operating income fell 2% to $177 million for the quarter and 2% to $540 million for the financial year to date.
Sales of premium brands slowed as some consumers traded down. Jack Daniel's sales were flat with gains in the US, Eastern Europe, Australia and Latin America offset by declines in Germany, Spain, South Africa, Italy and Turkey.
Southern Comfort declined at a "high single-digit rate", before taking into account currency changes.
Declines in the US and UK countered gains in Australia and Germany.
Finlandia saw double-digit growth led by Eastern Europe.
Chief executive officer Paul Varga said: "We are cautious regarding the short-term outlook, given the extreme difficulty and uncertainty in the global economy.
"At the same time, we believe the strength of our brands and the health of our balance sheet places Brown-Forman in a strong position both today and as conditions improve."
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