Brown-Forman Corporation (NYSE: BFA) (NYSE: BFB) reported financial results for its fourth quarter and fiscal year ended April 30, 2018. For the fourth quarter, the company’s reported net sales1 increased 6% to $733 million (+5% on an underlying2 basis) compared to the same prior-year period. In the quarter, reported operating income declined 32% to $145 million (-4% on an underlying basis) and diluted earnings per share of $0.23 declined 24%. Fourth quarter reported operating income and earnings per share were both negatively impacted by the previously announced creation of a $70 million charitable foundation, as well as the phasing of operating expenses.
For the full year, the company’s reported net sales increased 8% to $3,248 million (+6% on an underlying basis) compared to the prior-year period. Reported net sales growth benefited by one percentage point from foreign exchange and one percentage point from estimated net changes in distributor inventories. In the year, reported operating income increased 5% to $1,039 million (+8% on an underlying basis) and diluted earnings per share of $1.48 increased 8%. Tax reform items in the third quarter and the creation of the foundation in the fourth quarter negatively impacted fiscal 2018 earnings per share by $0.19.
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