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Boston Beer Posts Higher Q1 Profit

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Boston Beer Co Inc (NYSE: SAM) reported a rise in its profit for the first quarter on Wednesday.

The Boston, Massachusetts-based company reported a quarterly profit of $13.7 million, or $1 per share, versus a year-ago profit of $8.3 million, or $0.62 per share.

Its net revenue climbed to $199.5 million, versus $183.8 million in the year-ago period. However, analysts were estimating a profit of $0.68 per share on revenue of $204.18 million.

The average estimate among 26 Estimize users was for earnings of $0.71 per share and revenue of $208.02 million.

Core shipment volume rose 6 percent to approximately 885,000 barrels, while prices gained 2 percent in the quarter.

Advertising, promotional and selling expense declined 2 percent in the quarter.

Gross margin widened to 50 percent, from 49 percent in the year-ago quarter. Depletions rose 8 percent year-over-year in the latest quarter.

During the first quarter and the period from March 29, 2015 through April 24, 2015, Boston Beer repurchased around 53,000 shares of its Class A Common Stock for an aggregate purchase price of around $14.3 million.

Martin Roper, the Company's President and CEO, stated, "We are pleased with the start of the year and the continued growth of our business. In the first quarter, our depletions growth of 8% benefited from strength in our Angry Orchard, Twisted Tea and Traveler brands that offset slight declines in some of our Samuel Adams styles, as the comparables were tough due to our 30th Anniversary celebration, the rollout of Samuel Adams Rebel IPA, and the launch of Samuel Adams Cold Snap all in the first quarter last year. We continue to invest in our brands and in new opportunities such as Traveler, and we will increase investments in advertising, promotional and selling expenses commensurate with the opportunities and the increased competition that we see."

Boston Beer affirmed its outlook for 2015.

Boston Beer shares fell 2.62 percent to $253.00 in the after-hours trading session.

 

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