Kentucky-based distiller Brown-Forman Corp. reported higher profits for the third quarter of its fiscal 2018, as its American whiskey brands continued rapid growth.
The Jack Daniel's maker said net income grew 4% year over year to $190 million in the quarter that ended Jan. 31 from $182 million. The company earned 39 cents per share, up from 38 cents per share a year ago.
One-time items related to the new U.S. tax law reduced fiscal third-quarter earnings by 5 cents per share, the company said.
Operating income rose 11% to $304 million in the quarter from $273 million a year earlier, and income before taxes increased 12% to $289 million from $258 million.
Net sales for the quarter rose 9% to $878 million from $808 million in the prior-year period.
For the nine months ended Jan. 31, Brown-Forman reported a net income of $607 million, or $1.25 per share, up from $524 million, or $1.07 per share, in the same period a year earlier.
Year-to-date net sales increased to $2.52 billion from $2.30 billion in 2017. Reported sales of the Jack Daniel's family of brands grew 10%, while reported sales of the super- and ultra-premium American whiskey brands jumped 21%.
For full fiscal 2018, the company is expecting to earn between $1.43 per share and $1.48 per share, including an expense of 3 cents due to the U.S. tax law.
"Notwithstanding the phasing of costs, some of which are one-time in nature, we remain on track to deliver significantly accelerated top-line growth in fiscal 2018 given the strength of our premium American whiskey portfolio," said Brown-Forman CEO Paul Varga.
