US: Fortune Brands upbeat on Beam Global H1 performance
- Group H1 net profits jump by 36% to US$413.2m
- Net sales rise by 7% to $2.98bn
- Operating profits drop by 5% to $304.7m
- Beam Global Spirits & Wine reports record sales in Q2
Fortune Brands reports record Q2 sales for Beam Global Spirits & Wine
Beam Global, which is set to become fully independent early in the fourth quarter, reported net sales up by 14% for the six months to the end of June, to US$1.37bn. The Jim Beam Bourbon and Sauza Tequila maker's operating profits increased by 11% on the same period of last year, to $291.1m.
"With momentum on the top line and the EPS benefit of lower interest expense, we’re looking forward to a strong year for Beam on an independent company basis," said Beam's president and CEO, Matt Shattock. Beam's second-quarter net sales reached a record $702.7m, up by 11%.
"As a reminder, we expect third-quarter results to again reflect our strategy to invest ahead of growth as we’ll boost brand investment by strong double digits to support new product launches and build our core brand equities," Shattock said.
For the Fortune Brands business as a whole, half-year net profits jumped by 36.8% to $409.8m.
However, a $10m charge relating to the separation of Fortune Brands' businesses, together with higher selling costs, saw the group's operating profits slip by 5% for the six months, to $304.7m. Group net sales rose by 7% to $2.98bn.
We have yet to see the official figures on the US spirits market in 2011, but the signs suggest that renewed momentum in premium has been maintained....
Beam Inc has closed its acquisition of Cooley Distillery and has already earmarked the firm's Kilbeggan brand as a potential vehicle for capitalising on strong demand for Irish whiskey....
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