Brown-Forman’s third-quarter profits came in below expectations after struggling to keep a lid on rising costs.
The maker of whiskey brands such as Jack Daniel’s and Woodford Reserve saw reported operating income fall by 50% to $173m (-11% on an organic basis) on net sales up 4% to $1.1bn (+5% organic).
As well as soaring transportation and input costs, the company’s selling, general and administrative expenses rose 14%, while advertising charges increased 21%.
Despite the slower growth in the latest quarter, Brown-Forman forecasted 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.
