Beam Inc. (BEAM), a maker of distilled spirits, on Friday reported a profit for the fourth quarter that rose 10 percent from last year on higher comparable sales, strong performance of the company's Power Brands and new-product launches. Looking ahead to fiscal year 2012, the company forecasts earnings growth in high-single digits.
The Deerfield, Illinois-based company, formerly known as Fortune Brands Inc., said its net income for the fourth quarter was $94.1 million or $0.59 per share, up from $85.4 million or $0.55 per share in the year-ago period.
Adjusted pro forma earnings per share increased 9.5 percent to $0.69 from $0.63 in the prior-year quarter. On average, eight analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the quarter.
Net sales for the quarter, excluding excise taxes, edged up 1.2 percent to $637.5 million from $629.8 million in the same period last year. Analysts expected revenues of $653.36 million.
Comparable net sales for the quarter rose 4 percent from last year, despite the anticipated adverse impact of the timing of sales in Mexico and Australia that effectively reduced sales growth by about 2 points. Comparable net sales increased 2 percent in North America.
Matt Shattock, president and chief executive officer of Beam said, "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 fiscal year 2011, Beam's net income was $917.0 million or $5.81 per share, up from $487.6 million or $3.16 per share in the prior year.
Adjusted pro forma earnings per share rose 10.4 percent to $2.12 from $1.92 a year ago. Analysts expected earnings of $2.12 per share for the year.
Net sales for the year, excluding excise taxes, grew 14.2 percent to $2.31 billion from $2.09 billion last year. Analysts had a consensus revenue estimate of $2.28 billion.
Comparable net sales for the year rose 8 percent from last year.
Looking ahead to the first quarter, Beam said that the results will be favorably impacted by its upcoming innovations and the Skinnygirl acquisition. However, results would be adversely impacted by the one-time start-up benefit of the Australian distribution partnership that significantly benefited sales and operating income in the year-ago period, the company noted.
For fiscal year 2012, Beam forecasts earnings per share before charges and gains to increase in a high-single digit range against the 2011 base of $2.12. Analysts expect earnings of $2.32 per share.
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 the U.S. and double-digit growth in key emerging markets. Against this backdrop, we see market growth across key spirits categories, including strong worldwide demand for bourbon."
BEAM closed Thursday's trading at $53.00, up $0.12 on a volume of 744,900 shares.
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