Dec 5 (Reuters) - Brown-Forman ( BF/A ) beat
second-quarter sales and profit estimates on Thursday, helped by
steady demand for its ready-to-drink beverages and spirits.
Shares of the company, which has dropped nearly 28% so far
this year, rose about 6% before the bell.
The company's famed whiskey products including Woodford
Reserve and Old Forester saw sales grow based on brand strength
and popularity among consumers with expendable income.
The resurgence in popularity of its Jack Daniel's Tennessee
Whiskey, along with an increase in distributor inventories also
helped the company beat sales estimates after three consecutive
quarters of decline.
However, the company has been plagued by high input costs,
especially for ingredients such as agave for its Tequila
products, which have offset the benefits of the premium pricing,
causing the quarterly gross margin to fall by 8%.
Brown-Forman ( BF/A ) posted a net income of $258 million, or 55
cents per share, for the quarter, compared with $242 million, or
50 cents, a year earlier. Analysts on average estimated it to
earn 49 cents per share, according to data compiled by LSEG.
For the second quarter, the company posted net sales of
$1.10 billion, compared with analysts' average estimate of $1.08
billion.
The company also reiterated its organic sales growth
forecast for fiscal 2025 to be in the range of a 2% to 4% rise.