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 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.