Brown-Forman has posted 4% increase in net sales to $878.1m for the first quarter (Q1) of fiscal 2013 ended 31 July 2012, compared to $840.3m during the corresponding period last year.

On an underlying basis, the company reported growth in net sales by 10%, primarily due to buy-ins related to price increases that were implemented in the quarter, negative impact from foreign exchange and absence of Hopland-based wines.

Reported operating income was increased by 19% to $221.7m during the reporting period, up 19%, as against the operating income of $185.9m for the same period in 2011.

Underlying operating income increased by 17%, driven primarily by revenue growth, gross margin expansion and some leverage with operating expenses.

For the three-months ended on 31 July 2012, its diluted earnings per share stood at $0.69, an increase of 27%, compared to $0.54 in the prior year period.

Net income increased by 25% from $118.1m in the first quarter of 2011 to $147.5m for the present quarter.

Brown-Forman CEO Paul Varga said building from its strong fiscal 2012 results, the company is off to a good start in fiscal 2013.

"Underlying net sales growth of 10% in the first quarter was driven by the continued strength of our Jack Daniel’s trademark as well as improving results from other brands in our premium portfolio," Vagra added.