Boston Beer Down In Afterhours On Disappointing Q1 Results

  • Boston Beer Company Inc SAM reported a first-quarter revenue decline of 21.1% year-over-year to $430.1 million, below the consensus of $447.88 million. EPS decreased to $(0.16), from $5.26 in 1Q21.
  • Q1 depletions decreased by 7%, and shipments were down 25.1% compared to 1Q21.
  • The gross margin declined by 560 bps to 40.2%.
  • Operating expenses were $175.1 million, an increase of 1.2% Y/Y.
  • Boston Beer reported an operating loss of $(2.15) million versus an operating income of $76.59 million a year ago.
  • SAM’s net cash used in operating activities totaled $41.01 million in Q1, compared to cash generated of $19.81 million in 1Q21.
  • “Despite our depletions decline, we gained dollar share in measured off-premise channels in the first quarter – the second-largest share gain among brewers. The out-of-stock issues that affected our first quarter performance have improved during the quarter, setting us up for additional growth over the rest of the year,” commented Chairman and Founder Jim Koch.
  • FY22 Outlook: Boston Beer projects full-year Non-GAAP earnings per diluted share between $11.00 and $16.00, versus a consensus of $13.85.
  • It expects national price increases of between 3% and 5%; and a gross margin of 45% to 48%.
  • It says depletion and shipment growth continues to be estimated at between 4% and 10%.
  • Price Action: SAM shares are trading lower by 3.42% at $335 during the post-market session on Thursday.
  • Photo via Wikimedia Commons
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