US: Bourbon, Skinnygirl sales boost Beam's H1 profits
- H1 like-for-like net profits rise by 44.8% to US$179.7m
- Net sales rise by 3.2% to US$1.13bn
- Operating profits up by 10.8% to US$256.8m
- FY earnings growth target raised to low double-digit
Beam has been helped by innovations, such as Skinnygirl
Beam Inc has reported a double-digit jump in first-half profits driven by demand for its Bourbon brands and the Skinnygirl range.
Like-for-like H1 net profits were up 44.8% to US$179.7m in the six months to the end of June, the Illinois-headquartered firm, which became the sole part of Fortune Brands when the company spun off its other units last year, said today (2 August). Sales were also up, by 3.2% to $1.13bn, while operating profits rose 10.8% to $256.8m.
One third of the rise in H1 net sales, which were 8% on a comparable basis, were driven by new product innovations, the spirits group said.
“Our strong top-line results were driven by our Power Brands and Rising Stars – led by Jim Beam, Maker’s Mark and Skinnygirl – and record quarterly sales from new products that improved our product mix," said Matt Shattock, Beam's president & CEO.
Beam has been expanding the Skinnygirl range since it acquired the pre-mixed cocktail brand in March 2011.
North America sales were "particularly strong", Shattock added.
Q2 saw a 62.3% rise in like-for-like net profits, as net sales rose 4.4% to $595.5m.
Looking ahead, the company raised its full-year growth target to "low double-digit".
Shattock said: “As we execute our successful growth strategy, we’re encouraged by several dynamics that benefited Beam in the quarter, including the strong sell-in for our innovations, impactful brand activation in markets around the world, and strong worldwide demand for Bourbon."
He added that its Pinnacle Vodka acquisition is "off to a good start."
To view the full company announcement, click here
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