Beam's Sales Fizzle

Spirits giant Beam (NYSE: BEAM  ) announced quarterly earnings today, and while CEO Matthew Shattock praised the company for continued product growth in various regions, many key financial metrics fell flat.

The company's net sales were 4.5% lower than during the same quarter in 2012, dropping from $626.7 million to $598.7 million this quarter. According to the company's press release, the drop in sales was attributed to "several timing-related factors" regarding shipments in the U.S., Australia, and emerging markets.

Beam's operating income dropped 10.5% this quarter, to $144.9 million, despite many of its operating costs, including marketing and SG&A, being lower than this time in 2012. Net income, meanwhile, came in at $84.8 million compared to last year's Q3 of $96.2 million.

Shattock said these declines were expected, and that despite the lagging metrics, "U.S. consumer takeaway accelerated in the quarter as our leading Bourbon, Tequila and Vodka brands gained momentum." The company said its ready-to-serve cocktails category declined again. The company's comparable net sales in Europe/Middle East/Africa (or EMEA) rose 3% this quarter, while sales in North America dropped 1%, and in Asia-Pacific/South American (APSA) markets, sales dropped 20%.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2708080, ~/Articles/ArticleHandler.aspx, 11/24/2014 4:37:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement