This post was originally published on this site
Spirit makers such as Brown-Forman have had to raise prices to shield their margins from soaring transportation and input costs.
The company’s selling, general and administrative expenses rose 14% to $186 million in the quarter. Advertising expenses also increased 21% to $141 million.
Its shares fell about 4% to $63.55 in early trading on Wednesday.
Last month, peer Pernod Ricard (EPA:PERP), the maker of Absolut vodka, said it planned more price increases in the second half of the year in China and the United States to protect its profit margins.
Brown-Forman, however, forecast full-year organic net sales growth in the range of 8% to 10%, which was roughly in line with its prior outlook. The company also retained its high-single digit growth outlook for annual operating income, citing easing supply chain constraints.
Net income of the American bourbon whiskey maker fell to $100 million, or 21 cents per share, in the quarter ended Jan. 31, from $259 million, or 54 cents per share, a year earlier, mainly due to a pension settlement charge.
On an adjusted basis, the company earned 25 cents per share, missing analysts’ average estimate of 47 cents, according to Refinitiv data.
The Louisville, Kentucky-based company’s quarterly revenue rose 4.2% to $1.08 billion, edging past analysts’ expectations of $1.01 billion.
