Brown-Forman Corporation Class B (NYSE:BF.B) stock rose 2.44% (As on June 6, 11:17:20 AM UTC-4, Source: Google Finance) after the company beat fourth-quarter profit expectations, as price hikes on its premium whiskey and tequila helped offset waning demand. Gains from price hikes across the portfolio and lower supply chain costs helped the company counter higher raw materials costs such as agave, a key ingredient for tequila, and wood barrels. Brown-Forman reported a 2% decline in the organic sales of its Whiskey products owing to lower volumes for Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey, reflecting an estimated net decrease in distributor inventories. The company has reported net sales for the Tequila 3 portfolio decreased 4% (-7% organic). Herradura’s reported net sales declined 10% (-13% organic) led by lower volumes in the United States reflecting an estimated net decrease in distributor inventories. el Jimador’s reported net sales were flat (-1% organic) driven by lower volumes in Mexico and the United States offset by higher prices. The Ready-to-Drink (RTD) portfolio delivered reported net sales growth of 2% (flat on an organic basis). New Mix’s reported net sales increased 32% (+17% organic) fueled by higher prices. The company has reported net sales of Jack Daniel’s RTD/RTP portfolio declined 6% (-5% organic) driven by lower volumes of Jack Daniel’s Cola RTD, partially offset by the continued launch of the Jack Daniel’s Coca-Cola RTD. The company’s reported net sales were negatively impacted by an estimated net decrease in distributor inventories in the United States. Diplomático and Gin Mare drove the significant increase in the Rest of Portfolio’s reported net sales growth of 61% (+15% organic) led by the Developed International markets and the United States.

BF.B in the fourth quarter of FY 24 has reported the adjusted earnings per share of 56 cents, beating the analysts’ estimates for the adjusted earnings per share of 42 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 8 percent to $964 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 6.11%. In the quarter, reported operating income increased 26% to $375 million (-16% on an organic basis).

The company, which saw a 7% drop in organic sales of its tequila business, forecast annual organic sales growth in the range of 2% to 4%, the midpoint of which is slightly below analysts’ estimates of 3.68% growth.