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Beam Inc. (NYSE: BEAM), a leading global premium spirits company, today reported strong results for the third quarter of 2012.
Net sales increased 8% and were up 4% on a comparable basis, even with a challenging comparison to strong North America sales in the year-ago quarter. Comparable sales growth was broad-based and benefited from innovations that improved product mix, higher pricing, and increased volumes. Comparable sales grew across the company’s three segments, with particularly strong growth for the company’s global Power Brands in core markets.
On a reported basis (GAAP), diluted earnings per share from continuing operations were $0.57 versus a loss of $0.53 in the year-ago quarter. Diluted EPS before charges/gains was $0.62, up 17%, with leverage delivered by sustained top-line outperformance, improved price/mix, and lower interest expense.
Through the first three quarters of 2012, reported net sales increased 5% and were up 7% on a comparable basis. Diluted EPS before charges/gains is up 21% year to date, and is up 526% on a reported basis. Reported earnings comparisons reflect the impact of costs in 2011 associated with the separation of Fortune Brands’ businesses.
Stronger Portfolio, Market Position and Earnings Growth
“One year after becoming a pure-play spirits company, Beam is creating value with a stronger brand portfolio, a stronger industry position, and stronger earnings growth,” said Matt Shattock, president and chief executive officer of Beam Inc. “With momentum from our investments in brand building, enhanced routes to market that leverage our broad brand portfolio, and synergy-driven acquisitions, we’ve exceeded our long-term goal over the past year by increasing sales at approximately twice the growth rate of our global market footprint. Our global growth is supported by our strengthened #2 position in the United States, the world’s most profitable market, and fast growth in key categories and geographies around the world.”