just The Preview - Beam Inc Q3 and YTD
By Olly Wehring | 1 November 2012
Beam will report results for its third quarter and YTD on Friday (2 November)
Beam Inc will report results for its third quarter and year-to-date tomorrow (2 November). Here, just-drinks takes a look at the highs and lows for the company in the three months to the end of September and its performance in recent quarters.
- In late-July, the company announced the appointment of Gretchen Price, a former executive at Procter & Gamble, to its board. The move means that Beam now has eight directors, only one of which, CEO Matt Shattock, works full-time for Beam.
- On a conference call in August, CEO Shattock voiced his support for the 'bounce-backability' of the Tequila sector in the US. "The consumption levels (of Tequila in the US) are trending in the right direction and we have some exciting packaging re-launches coming in the back half of this year," he said.
- Also in August, one industry analyst suggested that Beam would not be playing in the M&A arena any time soon, preferring instead to focus on brand building for the foreseeable future. A planned rise in A&P spend suggested “a strong commitment to building brands and innovation”, said Nomura.
- Despite Beam's best attempts to make itself a tougher takeover target – particularly through recent M&A activity - another analyst warned that its valuation of the company "reflects … the company’s potential as an acquisition target". Initiating its coverage of Beam in August, CLSA conceded that any move for Beam would now be a "very expensive deal", noting that the firm's purchases "suggest it is focused on consolidating rather than being consolidated".
- In September, Beam played musical chairs with Brown-Forman in Japan, with the two swapping distributors. Suntory announced that it will begin distributing the Jim Beam and Maker's Mark brands in the country from 4 January. The two brands, which had previously been handled by Asahi, join the rest of Beam's brands at Suntory. Brown-Forman, meanwhile, will move its Japanese distribution in the other direction, from Suntory to Asahi, from 1 January.
In Beam's H1,
- net profits (like-for-like) rose by 44.8% to US$179.7m
- net sales were up by 3.2% to US$1.13bn
- operating profits increased by 10.8% to US$256.8m
For the company's Q2,
- Net profits (like-for-like) climbed by 62.3% to $101.3m
- Net sales were up by 4.4% at $595.5m
- Operating profits increased by 5% to $125.7m
In its Q1,
- net profits climbed by 27% to US$78.4m
- net sales increased by 13% to $533.8m
- operating profits rose by 17.1% to $131.1m
Beam Inc. (Beam), formerly known as Fortune Brands, Inc, is a premium spirits company. The company offers branded distilled spirits products. The product portfolio of the company consists of bourbon whiskey, Scotch whisky, Canadian whisky, tequila, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The renowned brands offered by the company include Jim Beam Bourbon, Canadian Club Whisky, Maker’s Mark Bourbon, Sauza Tequila, Courvoisier Cognac, Teacher’s Scotch, Laphroaig Scotch, Knob Creek Bourbon, Cruzan Rum, Basil Hayden’s Bourbon, Kilbeggan Irish Whiskey, Hornitos Tequila, Skinnygirl Cocktails, EFFEN Vodka, Pucker Vodka and Sourz Liqueurs among others. The company’s major markets includes North America, Australia and Europe, and also maintains presence in the markets of India, Brazil, Russia, Central Europe, Asia, and other geographies. The company is headquartered in Illinois, the US. The company is expanding its operations as evident from its recent acquisition related agreement with White Rock Distilleries to acquire the fast-growing Pinnacle Vodka and Calico Jack rum brands and other related assets for $605m in cash.
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just The Preview - Beam Inc Q3 and YTD