BOSTON BEER UPDATES 2024 FINANCIAL GUIDANCE TO REFLECT SUPPLIER CONTRACT AMENDMENT
Boston Beer Company (NYSE: SAM) has amended its production agreement with Rauch North America Inc, resulting in increased production flexibility and more favorable termination rights in exchange for a $26 million cash payment. This will lead to a pre-tax contract settlement expense of $26 million ($1.70 after-tax per diluted share) in Q4 2024.
The company updated its 2024 guidance, maintaining estimates for depletions and shipments (down low single digits), price increases (2%), and gross margin (44% to 45%). The GAAP EPS guidance was revised to $3.80-$5.80 (from $5.50-$7.50), while Non-GAAP EPS remains at $8.00-$10.00. Shortfall fees are expected to impact gross margin by 65-75 basis points, with third-party production pre-payments affecting it by 95-105 basis points.
Boston Beer Company (NYSE: SAM) ha modificato il suo accordo di produzione con Rauch North America Inc, portando a una maggiore flessibilità produttiva e a diritti di risoluzione più favorevoli in cambio di un pagamento in contanti di 26 milioni di dollari. Questo comporterà una spesa per risoluzione contrattuale ante imposte di 26 milioni di dollari (1,70 dollari per azione diluita dopo le tasse) nel Q4 2024.
L'azienda ha aggiornato le sue previsioni per il 2024, mantenendo stime per le esigue diminuzioni e per le spedizioni (in calo di pochi punti percentuali), aumenti di prezzo (2%) e margine lordo (44% a 45%). Le previsioni EPS GAAP sono state riviste a 3,80-5,80 dollari (da 5,50-7,50 dollari), mentre le previsioni EPS Non-GAAP rimangono a 8,00-10,00 dollari. Si prevede che le commissioni di deficit influiscano sul margine lordo di 65-75 punti base, con i pagamenti anticipati per la produzione di terze parti che influiscono su di esso di 95-105 punti base.
Boston Beer Company (NYSE: SAM) ha modificado su acuerdo de producción con Rauch North America Inc, lo que resulta en una mayor flexibilidad de producción y derechos de terminación más favorables a cambio de un pago en efectivo de 26 millones de dólares. Esto conllevará un gasto de liquidación de contrato antes de impuestos de 26 millones de dólares (1,70 dólares por acción diluida después de impuestos) en el Q4 2024.
La compañía actualizó su guía para 2024, manteniendo las estimaciones de disminuciones y envíos (a la baja en un solo dígito), aumentos de precios (2%) y margen bruto (44% a 45%). Las proyecciones de EPS GAAP se revisaron a 3,80-5,80 dólares (de 5,50-7,50 dólares), mientras que las proyecciones de EPS No-GAAP permanecen en 8,00-10,00 dólares. Se espera que las tarifas por déficit afecten el margen bruto en 65-75 puntos básicos, y los pagos anticipados de producción de terceros afecten en 95-105 puntos básicos.
보스턴 맥주 회사 (NYSE: SAM)는 라우흐 북미와의 생산 계약을 수정하여 생산 유연성을 높이고 2600만 달러의 현금 지급에 대한 보다 유리한 종료 권리를 확보했습니다. 이는 2024년 4분기에 세전 계약 정산 비용이 2600만 달러(세후 희석 주당 1.70달러)가 발생하게 됩니다.
회사는 2024년 가이던스를 업데이트하며, 경미한 하락세를 보이는 출하량과 배송량, 가격 인상(2%), 총 마진(44%~45%)에 대한 추정치를 유지했습니다. GAAP EPS 가이던스는 3.80~5.80달러로 수정되었고(5.50~7.50달러에서), 비 GAAP EPS는 8.00~10.00달러로 유지됩니다. 부족분 수수료는 총 마진에 65-75bp의 영향을 줄 것으로 예상되며, 제3자 생산의 선불 지불이 95-105bp의 영향을 미칠 것입니다.
Boston Beer Company (NYSE: SAM) a modifié son contrat de production avec Rauch North America Inc, entraînant une flexibilité de production accrue et des droits de résiliation plus favorables en échange d'un paiement en espèces de 26 millions de dollars. Cela entraînera une dépense de règlement contractuel avant impôts de 26 millions de dollars (1,70 $ après impôts par action diluée) au T4 2024.
L'entreprise a mis à jour ses prévisions pour 2024, maintenant des estimations pour les déplétion et les expéditions (en baisse de quelques points de base), des augmentations de prix (2%) et une marge brute (44% à 45%). Les prévisions EPS GAAP ont été révisées à 3,80-$5,80 (de 5,50-$7,50), tandis que les prévisions EPS Non-GAAP restent à 8,00-$10,00. On s'attend à ce que les frais de pénalité affectent la marge brute de 65 à 75 points de base, les paiements anticipés de production par des tiers l'impactant de 95 à 105 points de base.
Boston Beer Company (NYSE: SAM) hat seine Produktionsvereinbarung mit Rauch North America Inc geändert, was zu einer erhöhten Produktionsflexibilität und vorteilhafteren Kündigungsrechten im Austausch gegen eine Barzahlung von 26 Millionen Dollar führt. Dies wird zu einer Vertragsabschlusssumme vor Steuern von 26 Millionen Dollar (1,70 Dollar nach Steuern pro verwässerter Aktie) im vierten Quartal 2024 führen.
Das Unternehmen hat seine Prognosen für 2024 aktualisiert und die Schätzungen für Depletion und Versand beibehalten (ein Rückgang im niedrigen einstelligen Bereich), Preissteigerungen (2%) und Bruttomarge (44% bis 45%). Die GAAP EPS-Prognose wurde auf 3,80-$5,80 (von 5,50-$7,50) revidiert, während die Non-GAAP EPS bei 8,00-$10,00 bleibt. Es wird erwartet, dass die Gebühren für Mindererträge die Bruttomarge um 65-75 Basispunkte auswirken, während Vorauszahlungen für die Produktion Dritter diese um 95-105 Basispunkte beeinflussen werden.
- Increased production flexibility and more favorable termination rights obtained
- Maintained Non-GAAP EPS guidance of $8.00-$10.00
- Price increases of 2% planned for 2024
- One-time $26 million cash payment required by December 23, 2024
- GAAP EPS guidance reduced from $5.50-$7.50 to $3.80-$5.80
- Shortfall fees and pre-payments negatively impacting gross margins by 160-180 basis points
- Expected decrease in depletions and shipments for 2024
Insights
BOSTON, Dec. 20, 2024 (GLOBE NEWSWIRE) -- As part of its ongoing initiatives to optimize its supply chain, The Boston Beer Company, Inc. (NYSE: SAM), today announced an amendment and restatement in its entirety of an existing production agreement with a third-party supplier, Rauch North America Inc (‘Rauch’). This amendment adjusts the existing production agreement to better match the Company’s future capacity requirements and results in increased production flexibility and more favorable termination rights to the company in exchange for a
As a result of the payment, the Company expects to record a pre-tax contract settlement expense of
Updated Future Third Party Production Obligations
For the full year 2024, the Company continues to estimate 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 continues to work to finalize its 2025 financial plan. The company does not expect this agreement to materially impact its previously provided estimate of
pre-payments along with its full year 2025 financial guidance in its fourth quarter earnings report in February 2025.
The Company has regular discussions with its third-party production suppliers related to its future capacity needs and the terms of its contracts. Changes to volume estimates, future amendments or cancellations of existing contracts could accelerate or change total shortfall fees expected to be incurred.
Updated Full-Year 2024 Projections
The Company has updated its full year guidance to reflect the estimated contract settlement expense discussed above. The Company’s actual 2024 results could vary from the current projection and are highly sensitive to changes in volume projections and supply chain performance.
| Full Year 2024 | Current Guidance | Prior Guidance |
| Depletions and Shipments Percentage Decrease | Down low single digits | Down low single digits |
| 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 contract settlement of
The increase in the estimated full year effective tax rate is due to the impact of the contract settlement which decreased estimated full year pre-tax income but did not significantly change estimated full year non-deductible expenses.
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 estimated impact of the contract settlement 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.
FAQ
How will the Rauch contract amendment impact SAM's 2024 earnings?
What are SAM's projected shortfall fees for 2024?
What is Boston Beer's (SAM) expected gross margin for 2024?
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