just The Preview - Beam Inc Q4 & FY
Beam Inc will release full-year results on Friday
Beam Inc will report its fourth-quarter and full-year results on Friday (1 February). Here, just-drinks takes a look at the highs and lows for the company in the three months to the end of December and performances in recent quarters.
- It is more than a year since Beam was created, yet rumours still swirl of potential takeovers. The chatter increased in early December as reports suggested Diageo and Suntory were circling. Beam stayed silent on the talk, while just-drinks editor Olly Wehring said the company has nothing to worry about... yet. Expect Beam to field more investor questions about potential suitors.
- There was a rash of investment in bricks and mortar in the past quarter, with Beam spending US$30m on an innovations hub and visitors centre in Kentucky. The company also announced plans for a new $1.7m business centre in Louisville.
- Beam executives said a review of its India operations following allegations of misconduct is still ongoing. According to reports in the country, Beam has asked some senior managers to stay away during the investigations, which focus on possible violations of the US Foreign Corrupt Practices Act.
- As Diageo and Pernod Ricard push into Africa, Beam's head of the region Albert Baladi told just-drinks in an exclusive interview he is “looking at strategies to enter the market”.
- Beam started to get behind its Pinnacle vodka brand, bought from White Rock last year, with a new advertising campaign. There were further changes for the brand last week when Beam announced it is closing Pinnacle's Maine production base.
In Beam's year-to-date,
- Nine-month like-for-like net profits rose by 23.2% to $271.4m
- Net sales in nine months to end of September were up by 5% to $1.76bn
- Operating profits increased by 61.7% to $419.2m
For the company's Q3,
- Net profits (like-for-like) increased by 19.2% to $91.7m
- Net sales climbed by 8.3% to $627.5m
For the company's Q2,
- Net profits (like-for-like) rose 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 $78.4m
- net sales increased by 13% to $533.8m
- operating profits rose by 17.1% to $131.1m
To read a preview of Beam's H1 results, click here.
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