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Beam reports strong 2011 fourth quarter and full year results
Published:  03 February, 2012

Beam Inc, the US-based global spirits company, has reported full-year net sales increases of 8%.

The company’s brands include: Jim Beam, Maker's Mark and Knob Creek bourbons, Sauza tequila, Canadian Club whisky, Courvoisier cognac, Teacher's scotch whisky, Laphroaig single malt scotch, Cruzan rum, Hornitos tequila, Effen vodka, Larios gin, DeKuyper cordials and Skinnygirl cocktails.

Beam president and CEO Matt Shattock said: “2011 was an extraordinary year for Beam. We launched Beam as a leading standalone spirits company, while we continued to outperform our markets and prime our business for sustainable, profitable long-term growth.”

“The Beam team executed well against our growth strategy in 2011, and delivered sales and earnings ahead of our long-term growth goals,” Shattock said. “Beam strengthened its balance sheet in 2011 and invested resources to generate both top-line momentum and long-term value with synergy-driven acquisitions in two dynamic growth categories: ready-to-serve cocktails and Irish whiskey. We see Skinnygirl cocktails and the Cooley Irish whiskey brands as excellent platforms for long-term value creation.

“Beam finished 2011 with a very good fourth quarter that was a bit above our expectations,” Shattock continued. “Comparable sales increased 4% in the quarter and adjusted pro forma diluted EPS (earnings per share) was up 9%. While the timing of sales – principally due to a significant inventory reduction in Mexico in advance of our distributor transition in that market – reduced Q4 sales by about 2 points of growth, market-beating performance for our global ‘power brands’, as well as new-product launches, helped drive our gains in the quarter.”

For the full year 2011:

Net income was $917.0 million, compared to $487.6m in 2010.

Net sales were $2.3 billion (excluding excise taxes) compared to $2.1bn in 2010.

Operating income was $395.5m, compared to $456.2m in 2010.

For the fourth quarter:

Net income was $94.1m compared to $85.4m for the fourth quarter of 2010.

Net sales were $637.5m (excluding excise taxes) compared to $629.8m for the fourth quarter of 2010.

Operating income was $136.2m compared to $140.1m for the fourth quarter of 2010.

“As we enter 2012, we’re encouraged by our continued marketplace momentum,” Shattock said. “We expect our global spirits market to continue to grow value in the range of 3%, supported by solid growth in mature markets such as theUSand double-digit growth in key emerging markets. Against this backdrop, we see market growth across key spirits categories, including strong worldwide demand for bourbon.

“In 2012, we believe Beam is primed to solidly outperform our markets at the top line, expand operating income faster than sales, and grow diluted EPS even faster,” said Shattock.

Key Brand Performance
Net sales growth, full year 2011 (January – December):




Power Brands

+9%

Jim Beam

+7%

Maker’s Mark

+14%

Sauza (1)

-2%

Courvoisier

+19%

Canadian Club

+5%

Teacher’s

+13%

Rising Stars

+42%

Laphroaig

+13%

Knob Creek

+20%

Basil Hayden

+27%

Cruzan

+8%

Hornitos

0%

EFFEN

+28%

Pucker Vodka

new

Skinnygirl

+486%

Sourz

+10%

Local Jewels

-5%

Value Creators

-1%

Net Sales (2)

+8%