US: YTD stays strong for Beam Inc, reaffirms FY target
- Nine-month like-for-like net profits rise by 23.2% to US$271.4m
- Net sales in nine months to end of September up by 5% to $1.76bn
- Operating profits rise by 61.7% to $419.2m
- Reaffirms FY earnings target
Beam Inc released its Q3 and YTD numbers earlier today
Beam Inc has reaffirmed its previous estimate for this year's profits, as it reported healthy numbers in the year-to-date.
Net profits on a like-for-like basis in the first nine months of 2012 increased by 23.2% to US$271.4m, the spirits group announced today (2 November). Sales in the same period were up year-on-year by 5% at $1.76bn.
Operating profits in the nine-month period rose by 61.7% to $419.2m.
Q3 net profits on a like-for-like basis increased by 19.2% to $91.7m. A leap in profits on a reported basis for the quarter - from a loss of $82m last year to a profit of $91.7m - was skewed by business separation costs and a loss on the early extinguishment of debt, both of which came into play in last year's Q3. Net sales in the period increased by 8.3% to $627.5m.
The company said the Q3 sales uplift came from “innovations that improved product mix, higher pricing, and increased volumes” with “particularly strong growth” for its so-called 'Power Brands' in core markets.
Beam president & CEO Matt Shattock said the group benefited from the “sustained rapid growth of the global Bourbon category, excellent consumer response to our innovations and high-impact marketing, and timing of expenses”.
Maker's Mark recorded a 23% sales uplift in the YTD, while Jim Beam saw 8% growth in the nine months. Pinncle Vodka, which Beam acquired in June, saw a 22% rise in sales since the deal completed.
Skinnygirl, the RTD cocktail range, saw a slowdown in sales from +81% in H1 to +19% in the year-to-date.
Looking ahead, Shattock said he expected fourth quarter earnings to be down against last year as brand investment will be 20% higher year-on-year, including advertising costs in the “key holiday selling season”.
He added: “We are able to make these investments even while reaffirming our target for Beam’s diluted EPS before charges/gains to grow at a low-double-digit rate for the full year.”
To read the company's official statement, click here.
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