- Brown-Forman (BF.B), the maker of Jack Daniel's whiskey, announced that its profits tumbled in the fiscal third quarter of 2023.
- The company's CFO noted the impact of higher costs for commodities, energy, and fuel.
- Shares of Brown-Forman fell 4% on March 8, reaching their lowest level since October.
Brown-Forman (BF.B) shares declined as the maker of Jack Daniel's whiskey and other spirits reported that profit plunged in its fiscal 2023 third quarter.
Brown-Forman said earnings tumbled 61% to $0.21 per share, mainly because of a drop in operating income and a $27 million pension settlement charge. Adjusted earnings of $0.25 per share were only about half of analysts' estimates. Revenue rose 4.2% to $1.08 billion, better than anticipated.
CFO Leanne Cunningham noted the company faced increased costs because of higher prices for commodities, energy, and fuel. She added Brown-Forman was also impacted by supply-chain disruptions that limited its ability to get products to store shelves.
Brown-Forman expects full-year organic net sales growth in the range of 8% to 10%, in line with the company's previous outlook. It said that the guidance reflects continuing strength of the portfolio of brands, strong consumer demand, and the return of inventories to more normalized levels.
Shares of Brown-Forman fell 4% on March 8 and are at their lowest level since October.