North American Whiskies Propel Beam To 4% Sales Growth In 2013
February 5, 2014In what will likely be its final full year as an independent company, Beam Inc. achieved reported net sales growth of 4%, to a record $2.55 billion, in calendar 2013. Beam’s net sales for the year were up 2% on a comparable basis, which adjusts for foreign exchange and acquisitions/divestitures. The company’s sales growth was driven by strong performances in North America (+5%) and Europe/Middle East/Africa (+6%), offsetting weak results in India and Australia, where the company’s Teacher’s and Jim Beam brands are market leaders in their respective categories.
Income from continuing operations was $365.5 million for the full year, or $2.24 per diluted share, compared with $2.51 per diluted share in 2012. That change was impacted by charges including early extinguishment of debt. Full-year earnings per diluted share before charges and gains were $2.63, up 10%.
For the full year, flagship brand Jim Beam’s comparable net sales grew by 3%, while fellow Bourbon Maker’s Mark thrived with a 17% jump. Canadian Club (+10%) and Sauza (+3%) were also on the rise, while Pinnacle vodka’s net sales were flat and Courvoisier Cognac (-2%) and Teacher’s (-7%) suffered declines.
Beam’s fourth quarter showed reported and comparable net sales increases of 4% and 5%, respectively, due largely to strong demand for the company’s higher-end whiskey brands and the Sauza and Hornitos Tequilas, as well as a late uptick in India after Beam struggled there for much of the past year. Operating income from continuing operations was $96.1 million, or $0.56 per diluted share, compared to $0.79 in the year-earlier period.
In mid-January, Japan’s Suntory agreed to acquire Beam Inc. for $16 billion. The transaction, which has been unanimously approved by each company’s board of directors, is expected to close in the second quarter of 2014, subject to Beam stockholders’ approval, regulatory approvals and other customary closing conditions. Beam Inc. has been a standalone company since October 2011, when it was spun off from Fortune Brands.
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