For the quarter, Brown-Forman reported net sales of $1.03 bn, an increase of 14% and ahead of expectations of $989 million. On an organic basis sales increased by 22%.
Operating income increased by 24% to $347 million (+43% on an organic basis) with the related margin increasing to 33.5% from 30.1% in Q3 2021. Diluted earnings per share increased 19% to $0.54 ahead of expectations of $0.46.
Sales growth was led by a robust performance in emerging and developed international markets, with solid growth in the United States and a rebound in the Travel Retail channel.
The Jack Daniel’s family of brands grew reported net sales 12% (+14% organic) powered by 17% reported net sales growth (+20% organic) from Jack Daniels’ Tennessee Whiskey. Premium bourbons, led by Woodford Reserve and Old Forester, grew reported net sales 10% (+10% organic). The tequila portfolio grew reported net sales 19% (+17% organic) driven by double-digit growth from Herradura and El Jimador.
Notwithstanding the current geopolitical tensions and ongoing global supply chain constraints Brown-Forman management are projecting net organic sales growth of 11% to 13% for the full year.