LOUISVILLE, Ky. (AP) – Spirits maker Brown-Forman Corp. said Wednesday its second-quarter net income fell slightly as tough foreign exchange conditions and lost revenue from a couple of brands it shed offset gains in its bourbon, tequila and flagship Jack Daniel’s Tennessee Whiskey products.
The Louisville, Kentucky-based company predicted stronger sales growth in the second half of its fiscal year, and reaffirmed its full-year earnings projection in the range of $1.71 to $1.81 per share.
Second-quarter underlying net sales growth in the U.S. accelerated to more than 6 percent, led by gains for the Jack Daniel’s lineup, the company said. U.S. sales were boosted by strong gains from its Woodford Reserve bourbon and Herradura and el Jimador tequila brands, it said.
But overall net sales growth for the first half of its fiscal year was hurt by the sale of its Southern Comfort and Tuaca brands and by unfavorable foreign exchange, it said. Foreign markets account for about 60 percent of the company’s total sales.
Brown-Forman sold Southern Comfort and Tuaca, a premium liqueur brand, to Sazerac in a deal that closed earlier this year.