Boston Beer Reports Third Quarter Financial Results
Boston Beer Company (NYSE: SAM) reported Q3 2024 financial results with mixed performance. Net revenue increased 0.6% to $605.5 million despite a 3% decrease in depletions and 1.9% decrease in shipments. The company recorded a gross margin of 46.3%, up 60 basis points year-over-year. GAAP earnings per share was $2.86, including a $2.49 per share non-cash brand impairment charge primarily related to Dogfish Head. The company maintains strong financial position with $255.6 million in cash, no debt, and has repurchased $191.0 million in shares year-to-date. Full-year 2024 guidance projects depletions and shipments to decrease in low single digits, with gross margin expected between 44% to 45%.
Boston Beer Company (NYSE: SAM) ha riportato i risultati finanziari per il terzo trimestre del 2024 con prestazioni miste. Il fatturato netto è aumentato dello 0,6% a 605,5 milioni di dollari nonostante un calo del 3% nelle vendite e una diminuzione dell'1,9% nelle spedizioni. L'azienda ha registrato un margine lordo del 46,3%, in aumento di 60 punti base rispetto all'anno precedente. L'utile per azione secondo i principi contabili generalmente accettati (GAAP) è stato di 2,86 dollari, inclusa una svalutazione non monetaria del marchio di 2,49 dollari per azione, principalmente legata a Dogfish Head. L'azienda mantiene una solida posizione finanziaria con 255,6 milioni di dollari in contanti, nessun debito e ha riacquistato azioni per 191,0 milioni di dollari fino ad oggi. Le previsioni per l'intero anno 2024 prevedono un lieve calo delle vendite e delle spedizioni in percentuale, con un margine lordo previsto tra il 44% e il 45%.
Boston Beer Company (NYSE: SAM) informó los resultados financieros del tercer trimestre de 2024 con un rendimiento mixto. Los ingresos netos aumentaron un 0,6% a 605,5 millones de dólares, a pesar de una disminución del 3% en las ventas y una disminución del 1,9% en los envíos. La compañía registró un margen bruto del 46,3%, un aumento de 60 puntos base en comparación con el año anterior. Las ganancias por acción según GAAP fueron de 2,86 dólares, que incluye un cargo por deterioro de marca no monetario de 2,49 dólares por acción, relacionado principalmente con Dogfish Head. La empresa mantiene una sólida posición financiera con 255,6 millones de dólares en efectivo, sin deudas, y ha recomprado acciones por un valor de 191,0 millones de dólares hasta la fecha. Las proyecciones para el año completo 2024 anticipan disminuciones en ventas y envíos en un rango de un solo dígito bajo, con un margen bruto esperado entre el 44% y el 45%.
보스턴 맥주 회사 (NYSE: SAM)는 2024년 3분기 재무 결과를 혼합된 실적으로 보고했습니다. 순매출은 6억 5백50만 달러로 0.6% 증가했지만, 판매량은 3% 감소하고 선적량은 1.9% 감소했습니다. 이 회사는 1년 전 대비 60베이시스 포인트 증가한 46.3%의 총 이익률을 기록했습니다. GAAP 기준 주당 순이익은 2.86달러였으며, 이는 주당 2.49달러의 비현금 브랜드 손상 비용이 포함되어 있으며 주로 Dogfish Head와 관련이 있습니다. 이 회사는 현금 2억 5천56백만 달러로 강력한 재무 상태를 유지하고 있으며, 현재까지 1억 9천1백만 달러의 주식을 재매입했습니다. 2024년 전체 연도 가이드는 판매량과 선적량이 낮은 단일 숫자로 감소할 것으로 예상하며, 총 이익률은 44%에서 45% 사이일 것으로 보입니다.
Boston Beer Company (NYSE: SAM) a publié ses résultats financiers pour le troisième trimestre 2024 avec des performances mitigées. Le chiffre d'affaires net a augmenté de 0,6% pour atteindre 605,5 millions de dollars, malgré une baisse de 3% des ventes et une diminution de 1,9% des expéditions. L'entreprise a enregistré une marge brute de 46,3%, en hausse de 60 points de base par rapport à l'année précédente. Le bénéfice par action selon les normes GAAP s'élevait à 2,86 dollars, incluant une charge de dépréciation non monétaire de 2,49 dollars par action, principalement liée à Dogfish Head. L'entreprise maintient une position financière solide avec 255,6 millions de dollars en espèces, aucune dette, et a racheté pour 191,0 millions de dollars d'actions jusqu'à présent. Les prévisions pour l'année entière 2024 prévoient une baisse des ventes et des expéditions dans une fourchette de faible un chiffre, avec une marge brute attendue entre 44% et 45%.
Boston Beer Company (NYSE: SAM) hat die Finanzzahlen für das dritte Quartal 2024 mit gemischter Leistung veröffentlicht. Der Nettoumsatz stieg um 0,6% auf 605,5 Millionen Dollar, trotz eines Rückgangs der Verkaufszahlen um 3% und einer Abnahme der Lieferungen um 1,9%. Das Unternehmen verzeichnete eine Bruttomarge von 46,3%, was einem Anstieg von 60 Basispunkten im Vergleich zum Vorjahr entspricht. Der GAAP-Gewinn pro Aktie betrug 2,86 Dollar, einschließlich eines nicht zahlungswirksamen Markenwertminderungsaufwands von 2,49 Dollar pro Aktie, der hauptsächlich mit Dogfish Head in Verbindung steht. Das Unternehmen verfügt über eine starke finanzielle Position mit 255,6 Millionen Dollar in bar, keinen Schulden und hat bisher 191,0 Millionen Dollar an Aktien zurückgekauft. Die Prognose für das gesamte Jahr 2024 erwartet einen Rückgang der Verkaufszahlen und Lieferungen im niedrigen einstelligen Bereich, mit einer erwarteten Bruttomarge zwischen 44% und 45%.
- Net revenue increased 0.6% to $605.5 million in Q3
- Gross margin improved 60 basis points to 46.3%
- Strong cash position of $255.6 million with no debt
- $400 million increase in share repurchase authorization
- Generated $207.0 million in operating cash flow year-to-date
- Depletions decreased 3% in Q3
- Shipments declined 1.9% to 2.24 million barrels
- $42.6 million non-cash impairment charge for Dogfish Head brand
- Net income decreased $11.8 million compared to prior year
- Lowered full-year GAAP EPS guidance to $5.50-$7.50 from $7.00-$11.00
Insights
The Q3 results present a mixed picture for Boston Beer. While net revenue increased marginally by
The
The Beyond Beer category dynamics reveal shifting consumer preferences. While Truly Hard Seltzer continues to decline, Twisted Tea and newer offerings like Sun Cruiser and Hard Mountain Dew show promising growth. The company's inventory levels at 5.5 weeks (above 4-5 week target) suggest potential distribution challenges and could pressure Q4 shipments.
The revised guidance reflecting "softer near-term category trends" indicates broader market challenges, though Boston Beer's strong brand portfolio and innovation pipeline position it well for potential category recovery. The focus on supply chain modernization and disciplined innovation approach should help optimize operations for 2025.
BOSTON, Oct. 24, 2024 (GLOBE NEWSWIRE) -- The Boston Beer Company, Inc. (NYSE: SAM), today reported financial results for the third quarter ended September 28, 2024. Key results were:
Third Quarter 2024 Summary:
- Depletions decreased
3% and shipments decreased1.9% - Net revenue increased
0.6% to$605.5 million - Gross margin of
46.3% up 60 basis points year over year - GAAP diluted earnings per share of
$2.86 , which includes a non-cash brand impairment charge of$2.49 per share recorded in the third quarter of 2024 - Non-GAAP diluted earnings per share of
$5.35
Year-to-date 2024 Summary:
- Depletions decreased
3% and shipments decreased2.9% - Net revenue decreased
0.3% to$1.61 1 billion - Gross margin of
45.5% up 190 basis points year over year - GAAP diluted earnings per share of
$8.27 , which includes a non-cash brand impairment charge of$2.49 per share recorded in the third quarter of 2024 - Non-GAAP diluted earnings per share of
$10.76
Capital Structure
- Generated
$207.0 million in operating cash flow year-to-date - Ended the third quarter with
$255.6 million in cash and no debt - Repurchased
$191.0 million in shares from January 2, 2024 to October 18, 2024 - Increased expenditure authorization for stock repurchase program by
$400 million
“We continue to believe that there is significant growth opportunity in Beyond Beer categories despite some near-term variability in alcoholic beverage demand. The Boston Beer Company has a proven track record in creating new categories, producing beyond beer beverages and getting them into the hands of drinkers,” said Chairman and Founder Jim Koch. “We are using the strong cash generation of the business to invest in our brands and return cash to shareholders. Based on our view of the long-term growth prospects for the company, we recently expanded our share repurchase authorization by
“We continue to make progress on our strategic priorities to nurture our core brands, launch and support innovation in a disciplined way and modernize our supply chain,” said President and CEO Michael Spillane. “Our guidance has been narrowed to reflect three quarters of results, somewhat softer near-term category trends and solid gross margin delivery. We are focused on implementing plans to position the company for an improvement in operational and financial performance in 2025 and beyond.”
Details of the results were as follows:
Third Quarter 2024 (13 weeks ended September 28, 2024) Summary of Results
Depletions for the third quarter decreased
The Company believes distributor inventory as of September 28, 2024 averaged approximately five and a half weeks on hand which is slightly higher than its target level of four to five weeks. This is expected to have a negative impact on fourth-quarter shipment volume which is reflected in the Company’s updated volume guidance.
Net revenue for the quarter increased
Gross margin of
The third quarter gross margin of
Advertising, promotional and selling expenses for the third quarter of 2024 decreased
General and administrative expenses increased by
Impairment of intangible assets reflects a
The Company’s effective tax rate for the third quarter of
Third quarter net income of
Year-to-date 2024 (39 weeks ended September 28, 2024) Summary of Results
Net revenue year-to-date of
Depletions year-to-date decreased
Gross margin year-to-date of
The year-to-date gross margin of
Advertising, promotional and selling expenses year-to-date decreased
General and administrative expenses year-to-date increased by
The Company’s effective tax rate year-to-date was
Net income year-to-date of
The Company expects that its September 28, 2024 cash balance of
During the 39-week period ended September 28, 2024 and the period from September 30, 2024 through October 18, 2024, the Company repurchased shares of its Class A Common Stock in the amounts of
Depletions Estimate
Year-to-date depletions through the 42-week period ended October 18, 2024 are estimated by the Company to have decreased approximately
Full-Year 2024 Projections
The Company has updated its full year guidance. The Company’s actual 2024 results could vary significantly from the current projection and are highly sensitive to changes in volume projections and supply chain performance as well as inflationary impacts.
Full Year 2024 | Current Guidance | Prior Guidance |
Depletions and Shipments Percentage Decrease | Down low single digits | Down low single digit to zero |
Price Increases | ||
Gross Margin | ||
Advertising, Promotion, and Selling Expense Year Over Year Change ($ million) | ( | ( |
Effective Tax Rate | ||
GAAP EPS | ||
Non-GAAP EPS | - | |
Capital Spending ($ million) | ||
The non-GAAP earnings per share (Non-GAAP EPS) projection excludes the impact of the non-cash brand impairments of
Underlying the Company's current 2024 projections are the following full-year estimates and targets:
- The advertising, selling and promotional expense projection does not include any changes in freight costs for the shipment of products to the Company’s distributors.
- During full year 2024, the Company estimates shortfall fees will negatively impact gross margin by 65 to 75 basis points and the non-cash expense of third-party production pre-payments will negatively impact gross margins by 95 to 105 basis points.
- The Company’s business is seasonal, with the first quarter and fourth quarter being lower volume quarters and the fourth quarter typically the lowest absolute gross margin rate of the year.
- The increase in the estimated full year effective tax rate is due to the impact of the third quarter non-cash brand impairment charge which decreased estimated full year pre-tax income but did not significantly change estimated full year non-deductible expenses.
2025 Financial Guidance
The Company is planning to provide full year 2025 financial guidance during its fourth quarter earnings call in February 2025.
Use of Non-GAAP Measures
Non-GAAP EPS is not a defined term under U.S. generally accepted accounting principles (“GAAP”). Non-GAAP EPS, or Non-GAAP earnings per diluted share, excludes from projected GAAP EPS the impact of the non-cash asset impairment charge of
Forward-Looking Statements
Statements made in this press release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including, but not limited to, the Company’s report on Form 10-K for the year ended December 30, 2023 and subsequent reports filed by the Company with the SEC on Forms 10-Q and 8-K. Copies of these documents are available from the SEC and may be found on the Company’s website, www.bostonbeer.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
About the Company
The Boston Beer Company, Inc. (NYSE: SAM) began brewing Samuel Adams beer in 1984 and has since grown to become one of the largest and most respected craft brewers in the United States. We consistently offer the highest-quality products to our drinkers, and we apply what we’ve learned from making great-tasting craft beer to making great-tasting and innovative “beyond beer” products. Boston Beer Company has pioneered not only craft beer but also hard cider, hard seltzer and hard tea. Our core brands include household names like Angry Orchard Hard Cider, Dogfish Head, Sun Cruiser, Truly Hard Seltzer, Twisted Tea Hard Iced Tea, and Samuel Adams. We have taprooms and hospitality locations in California, Delaware, Massachusetts, New York and Ohio. For more information, please visit our website at www.bostonbeer.com, which includes links to our respective brand websites.
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
Revenue | $ | 642,131 | $ | 639,394 | $ | 1,708,555 | $ | 1,715,883 | |||||||
Less excise taxes | 36,654 | 37,795 | 97,928 | 100,980 | |||||||||||
Net revenue | 605,477 | 601,599 | 1,610,627 | 1,614,903 | |||||||||||
Cost of goods sold | 325,236 | 326,951 | 877,580 | 910,430 | |||||||||||
Gross profit | 280,241 | 274,648 | 733,047 | 704,473 | |||||||||||
Operating expenses: | |||||||||||||||
Advertising, promotional, and selling expenses | 147,986 | 152,579 | 412,484 | 427,369 | |||||||||||
General and administrative expenses | 43,818 | 42,241 | 142,226 | 130,834 | |||||||||||
Impairment of intangible assets | 42,584 | 16,426 | 42,584 | 16,426 | |||||||||||
Impairment of brewery assets | 20 | 1,900 | 3,751 | 3,916 | |||||||||||
Total operating expenses | 234,408 | 213,146 | 601,045 | 578,545 | |||||||||||
Operating income | 45,833 | 61,502 | 132,002 | 125,928 | |||||||||||
Other income: | |||||||||||||||
Interest income | 3,582 | 3,478 | 10,021 | 6,977 | |||||||||||
Other expense | (317 | ) | (913 | ) | (795 | ) | (1,137 | ) | |||||||
Total other income | 3,265 | 2,565 | 9,226 | 5,840 | |||||||||||
Income before income tax provision | 49,098 | 64,067 | 141,228 | 131,768 | |||||||||||
Income tax provision | 15,584 | 18,772 | 42,778 | 37,394 | |||||||||||
Net income | $ | 33,514 | $ | 45,295 | $ | 98,450 | $ | 94,374 | |||||||
Net income per common share – basic | $ | 2.87 | $ | 3.70 | $ | 8.29 | $ | 7.69 | |||||||
Net income per common share – diluted | $ | 2.86 | $ | 3.70 | $ | 8.27 | $ | 7.67 | |||||||
Weighted-average number of common shares – basic | 11,682 | 12,228 | 11,878 | 12,268 | |||||||||||
Weighted-average number of common shares – diluted | 11,671 | 12,233 | 11,871 | 12,280 | |||||||||||
Net income | $ | 33,514 | $ | 45,295 | $ | 98,450 | $ | 94,374 | |||||||
Other comprehensive income (loss) : | |||||||||||||||
Foreign currency translation adjustment | 40 | (144 | ) | (181 | ) | — | |||||||||
Total other comprehensive income (loss) | 40 | (144 | ) | (181 | ) | — | |||||||||
Comprehensive income | $ | 33,554 | $ | 45,151 | $ | 98,269 | $ | 94,374 | |||||||
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||||||
(unaudited) | |||||||
September 28, 2024 | December 30, 2023 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 255,601 | $ | 298,491 | |||
Accounts receivable | 94,101 | 66,997 | |||||
Inventories | 160,322 | 115,773 | |||||
Prepaid expenses and other current assets | 25,659 | 20,538 | |||||
Income tax receivable | - | 1,711 | |||||
Total current assets | 535,683 | 503,510 | |||||
Property, plant, and equipment, net | 619,013 | 642,509 | |||||
Operating right-of-use assets | 29,766 | 35,559 | |||||
Goodwill | 112,529 | 112,529 | |||||
Intangible assets, net | 16,870 | 59,644 | |||||
Third-party production prepayments | 18,015 | 33,581 | |||||
Note receivable | 16,606 | — | |||||
Other assets | 33,510 | 42,661 | |||||
Total assets | $ | 1,381,992 | $ | 1,429,993 | |||
Liabilities and Stockholders' Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 102,906 | $ | 87,245 | |||
Accrued expenses and other current liabilities | 154,139 | 126,930 | |||||
Current operating lease liabilities | 6,602 | 9,113 | |||||
Total current liabilities | 263,647 | 223,288 | |||||
Deferred income taxes, net | 66,445 | 85,721 | |||||
Non-current operating lease liabilities | 31,592 | 36,161 | |||||
Other liabilities | 6,151 | 6,894 | |||||
Total liabilities | 367,835 | 352,064 | |||||
Stockholders' Equity: | |||||||
Class A Common Stock, | 95 | 100 | |||||
Class B Common Stock, | 21 | 21 | |||||
Additional paid-in capital | 671,781 | 656,297 | |||||
Accumulated other comprehensive loss | (238 | ) | (57 | ) | |||
Retained earnings | 342,498 | 421,568 | |||||
Total stockholders' equity | 1,014,157 | 1,077,929 | |||||
Total liabilities and stockholders' equity | $ | 1,381,992 | $ | 1,429,993 | |||
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
(unaudited) | |||||||
Thirty-nine weeks ended | |||||||
September 28, 2024 | September 30, 2023 | ||||||
Cash flows provided by operating activities: | |||||||
Net income | $ | 98,450 | $ | 94,374 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 70,904 | 66,603 | |||||
Impairment of intangible assets | 42,584 | 16,426 | |||||
Impairment of brewery assets | 3,751 | 3,916 | |||||
Gain on sale of property, plant, and equipment | (263 | ) | — | ||||
Change in right-of-use assets | 5,793 | 5,781 | |||||
Stock-based compensation expense | 14,686 | 12,313 | |||||
Deferred income taxes | (19,276 | ) | (10,349 | ) | |||
Other non-cash expense | 220 | 40 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (27,324 | ) | (31,253 | ) | |||
Inventories | (40,148 | ) | 3,786 | ||||
Prepaid expenses, income tax receivable, and other assets | (3,429 | ) | 3,986 | ||||
Third-party production prepayments | 15,566 | 22,130 | |||||
Other assets | 4,987 | (9,368 | ) | ||||
Accounts payable | 18,053 | 31,341 | |||||
Accrued expenses and other liabilities | 29,244 | 29,217 | |||||
Operating lease liabilities | (6,808 | ) | (6,542 | ) | |||
Net cash provided by operating activities | 206,990 | 232,401 | |||||
Cash flows used in investing activities: | |||||||
Cash paid for note receivable | (20,000 | ) | — | ||||
Purchases of property, plant, and equipment | (52,770 | ) | (48,777 | ) | |||
Proceeds from disposal of property, plant, and equipment | 23 | 1,708 | |||||
Net cash used in investing activities | (72,747 | ) | (47,069 | ) | |||
Cash flows used in financing activities: | |||||||
Repurchases and retirement of Class A common stock | (175,953 | ) | (62,477 | ) | |||
Proceeds from exercise of stock options and sale of investment shares | 2,699 | 10,660 | |||||
Cash paid on finance leases | (1,473 | ) | (1,184 | ) | |||
Payment of tax withholding on stock-based payment awards and investment shares | (2,406 | ) | (2,113 | ) | |||
Net cash used in financing activities | (177,133 | ) | (55,114 | ) | |||
Change in cash and cash equivalents | (42,890 | ) | 130,218 | ||||
Cash and cash equivalents at beginning of period | 298,491 | 180,560 | |||||
Cash and cash equivalents at end of period | $ | 255,601 | $ | 310,778 | |||
Copies of The Boston Beer Company's press releases, including quarterly financial results, are available on the Internet at www.bostonbeer.com |
Investor Relations Contact: Jennifer Larson (617) 368-5152 jennifer.larson@bostonbeer.com | Media Contact: Dave DeCecco (914) 261-6572 dave.dececco@bostonbeer.com |
FAQ
What was Boston Beer's (SAM) Q3 2024 revenue growth?
How much was Boston Beer's (SAM) brand impairment charge in Q3 2024?
What is Boston Beer's (SAM) updated EPS guidance for 2024?