The parent company of Beam Global Spirits & Wine, Fortune Brands, has posted its first quarterly increase in sales in the past eight quarters for the last three months of 2010.
The company announced today (29 January) that net sales in the three months to the end of December inched up by 0.6% year-on-year, coming in at US$1.79bn. Fortune also toasted a reversal of its operating losses in the fourth quarter of 2008 – which came in at $320.4m – delivering an operating profit of $47.3m.
Net profits totalled $11.5m versus a net loss a year earlier of $281.3m, due to a non-cash write-down charge and the impact of an RTD tax hike in Australia in 2008.
For the full-year, Fortune’s group sales were down by 12% at $6.69bn, while operating profits hit $505.2m, a leap of 247% year-on-year. Net profits, however, were 22% down at $242.8m.
Turning to Beam Global specifically, while net sales in the final quarter were up by 3.5% at $746.4m, operating profits at the division dropped by 44.2% to $70.4m.
For the full-year, net sales were flat, inching up by 0.5% to $2.47bn, with operating profits down by 10.9% to $484.7m.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Fortune Brands is emerging from the recession in a strong position, and we closed 2009 with our best quarter of the year,” said Fortune’s chairman and CEO, Bruce Carbonari. “Each of our businesses performed above our fourth-quarter profit expectations, and we delivered results above the top end of our full-year target ranges for EPS and free cash flow.”
“Despite challenges in select international markets, total spirits sales were higher in the quarter on gains for Jim Beam and Maker’s Mark in the US, and the benefit of the weaker US dollar.
Carbonari also said that he expects Fortune to up its brand-building investment in 2010.
“While we are encouraged by the macroeconomic improvement in the fourth quarter,” he continued, “we believe consumers will remain cautious while employment, credit markets, home values and consumer confidence continue to mend. Accordingly, we’re currently targeting to deliver diluted EPS before charges/gains for 2010 in the range of $2.30 to $2.80.”
In the first quarter of this year, investment behind spirits brands will be “substantially” higher than the low level of the corresponding quarter a year earlier.
Subscribe to Just Drinks for just £1 for 1 month
Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.
As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the drinks industry’s trajectory and the priorities shaping the profession.
What’s included in your subscription:
- Personalized Access: Secure login to Just Drinks
- Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
- Case Studies & Deep Dives: Real-world applications and in-depth analyses.
- Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.
Ready to stay informed?
Subscribe to unlock exclusive content.
Already a subscriber? Sign in to access your account.
Pleasecomplete this form to request more information, and a representative will be in touch shortly.
