Manufacturer of distillates have 7% lower profit in the first fiscal quarter

The American manufacturer of distillates Brown-Forman, owner of Jack Daniel''s whiskey, ended the first fiscal quarter, ended July 31, with net income of $ 144,000,000, 7% drop compared to the same range as the previous year.
According to the company, the result in the period suffered negative impact of exchange rate variations on sales to emerging markets. Another factor cited was the sale in January of the brands of liquor Southern Comfort and Tuaca for the Sazerac, for $ 543,500,000, which contributed to the drop in sales revenue.
Net sales for the quarter overall decreased 5% to $ 661,000,000. Excluding the impact of exchange rate variations, there was 2% revenue growth. Sales outside the United States retreated 5%, but, in constant currency, increased by 5%, according to the company.
Brown-Forman also reported that sales to emerging markets declined in the period, but the company expected a stabilization in those countries. For the quarter, sales in emerging markets retreated 17%.
While in Poland and Mexico had a little sales growth, Brazil, Turkey, Russia, China, Thailand and Eastern European countries was decrease.
Globally, sales of the lines of the brand Jack Daniel''s recorded low of 3% in the period. The el Jimador and Herradura brands increased by 9% and 16%, respectively. Woodforce Reserve line also had increased sales in the period, 19%.
The gross profit of the Brown-Forman was stable at $ 208,000,000 in first fiscal quarter. Advertising expenses were reduced by 14%, to $ 82,000,000. The selling expenses General and administrative, had 4 percent drop, to $ 163,000,000. The operating profit fell 6 percent, to $ 213,000,000.