Liquor Companies Post Robust Gains

Two of the world’s largest liquor companies, Diageo and Brown-Forman Corp., reported strong growth in earnings Thursday as a variety of brands experienced solid growth.

Diageo, the world’s largest producer and distributor of alcoholic drinks, reported a 21.7% rise in annual profit. The maker of Smirnoff vodka, Guinness stout and Johnnie Walker scotch said net income for the year ended June 30 was $2.73 billion, compared with $2.22 billion a year earlier.

Diageo’s sales rose 8.2% to $18.4 billion.

Meanwhile, Louisville, Ky.-based Brown-Forman said profit for its fiscal first quarter ended July 31 rose 7% to $93.8 million, or 76 cents a share, from $87.5 million, or 71 cents, a year earlier.

Brown-Forman’s sales rose 17% to $639.7 million on volume growth and margin improvement for the company’s premium brands, led by Jack Daniel’s Tennessee Whiskey.

London-based Diageo credited North America as its key growth driver, with sales up 7% and profit up 6%. The company increased its market share in the region by 0.4 percentage points.

Brown-Forman reiterated its full-year earnings outlook of $3.10 to $3.30 a share, bracketing the current Thomson estimate of $3.20 a share. Its Class A shares rose 91 cents to $77.40..