Brown-Forman Corporation (NYSE:BF.B) Q3 2018 Earnings Conference Call - Final Transcript

Mar 07, 2018 • 10:00 am ET


Brown-Forman Corporation (NYSE:BF.B) Q3 2018 Earnings Conference Call - Final Transcript


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Good morning. My name is Dorothy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Brown-Forman Third Quarter Fiscal 2018 Conference Call. All lines have been placed on mute, to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you.

I would now like to turn the conference over to Jay Koval, Vice President and Director of Investor Relations. Sir, you may begin your conference.

Jay Koval

Thanks, Dorothy, and good morning, everyone. I want to thank you for joining us today for Brown-Forman's third quarter 2018 earnings call.

Joining me today are Paul Varga, our Chairman and Chief Executive Officer; Jane Morreau, Executive Vice President and Chief Financial Officer; and Brian Fitzgerald, Chief Accounting Officer.

This morning's conference call contains forward-looking statements based on our current expectations. Numerous risks and uncertainties may cause actual results to differ materially from those anticipated or projected in these statements. Many of the factors that will determine future results are beyond the company's ability to control or predict. You should not place undue reliance on any forward-looking statements and the company undertakes no obligation to update any of these statements, whether due to new information, future events or otherwise.

This morning, we issued a press release containing our results for the third quarter of fiscal 2018, in addition to posting presentation materials that Jane will walk through momentarily. Both the release and the presentation can be found on our Web site under the section titled Investors, Events & Presentations. In the press release, we have listed a number of the risk factors that you should consider in conjunction with our forward-looking statements.

Other significant risk factors are described in our Form 10-K, Form 8-K and 10-Q reports filed with the Securities and Exchange Commission. During this call, we will be discussing certain non-GAAP financial measures. These measures, and the reasons management believes they provide useful information to investors regarding the company's financial conditions, and results of operations are contained in the press release.

And with that, I will turn the call over to Jane for her prepared remarks.

Jane Morreau

Thanks, Jay, and thanks for joining us for our third quarter earnings call.

During my comments today, I will reference the slides we posted to our Web site this morning to help you walk through our two main areas of focus which includes; first, a review of our strong year-to-date results. And second, our revised full year outlook for fiscal 2018.

After I complete my prepared remarks, I'll turn the call over to Paul for his comments, and then we'll open it up to Q&A.

Let me start with the overall highlights which are shown on Slide 3.

First, our reported net sales grew 9% during the nine months ended January 31st, 2018, and reported operating income increased 15%. Sales and operating income growth were propelled by strong underlying trends, and helped by foreign exchange, as well as an uptick