B-F SEES SLUGGISH CONSUMPTION IN THE US

First quarter net sales grew 17% yoy to $106 million, while gross profit increased 12% to $42 million. Continuing consumer demand for premium global brands (particularly in international markets), the addition of acquired brands (Herradura) and a weaker US dollar contributed to the strong results, however the Casa Herradura acquisition hurt overall gross margin.

Jack Daniel's depletions (shipments from wholesalers to retailers) registered mid-single digit gains in the quarter, led by double-digit growth outside of the U.S. Meanwhile, Jack Daniel's volume growth moderated slightly, increasing at a low-single digit rate in the U.S.

SoCo grew mid-single digits internationally, while strong gains in the UK, South Africa and Germany were offset by modest declines in the US.

Stay tuned for deeper coverage tomorrow...