US: Beam Global Spirits & Wine profits slip in Fortune Brand's Q1

Fortune Brands has posted a sharp leap in group net profits for the first quarter, although operating profits at its Beam Global Spirits & Wine unit slipped in the period.

For the three months to the end of March, operating profits at Beam Global were down by 10.5% year-on-year to US$115.1m, despite a 17.8% jump in sales, which came in at $573.1m. Healthy operating profit rises at Fortune's Home & Security and Golf divisions offset the fall, however.

The group as a whole saw net profits up by a massive 875.7% to $72.2m, with Fortune's sales increasing by 12.9% to $1.63bn. Group operating profits also soared, by 158.5% to $156.4m.

“These strong results were driven by the powerful combination of higher volumes and lower costs, as each of our three brand groups outperformed our expectations,” said Fortune's chairman and CEO, Bruce Carbonari.

“Our strategic investments in spirits helped drive growth for our brand portfolio in all global regions, including share gains in key markets for brands such as Jim Beam, Maker’s Mark and Sauza.”

“While there is still uncertainty in global economies ... we feel well positioned to deliver improved results," Carbonari continued. "We expect the markets for each of our brand groups will be up at a low-single-digit rate for the year, and we’re aiming to outperform our categories by continuing to invest in our brands and leverage our lower cost structures.”

Earlier this week, Fortune raised its raised full-year earnings guidance to between $2.50 to $2.80 per share.

To read the official release, click here.