Brown-Forman (NYSE:BF-B) reported an unexpected rise in Q4 revenue yesterday despite inflationary pressures. Net sales grew by 5% to $1.05 billion, surpassing Street expectations. Annual net sales increased by 8% to $4.23 billion, driven by strong consumer demand for premium products. Post-pandemic restrictions easing and travel retail sales surging by 41% contributed to the company’s success.
The company reported organic sales growth of 4% well ahead of the Street estimate of a 0.7% decline with the year-to-date organic sales up 3% in the US, Developed International up 10%, Emerging Markets up 24% and Travel Retail up 43%. YTD results imply slower US growth as expected, with Emerging Markets and Developed international markets driving growth.