• Nine-month net profits rise by 27% to US$48.3m
  • Net sales rise by  6.5% to $370.9m 
  • Operating profits increased by 25% to $126.5m
  • Brewer raises full-year outlook as craft beer demany remains buoyant
Boston Beer Co raises profits forecast on strong nine-month trading

Boston Beer Co raises profits forecast on strong nine-month trading

Boston Beer Co is again outperforming a lacklustre US beer market in 2011, having reported a solid rise in sales and a strong increase in profits for the first nine months of the year.

Against a US beer market that has continued to shrink in low single digits, Boston Beer reported volume sales up by 6% for the nine months to the end of September. Momentum increased in the third quarter, with volumes up by 7% on the same period of last year.

For the nine months, net sales increased slightly slower than volumes, by 6.5% to $370.9m. However, signs of price pressure on the Samuel Adams brewer reduced in the third quarter, with net sales up by 8.5% to $134.8m. 

Boston Beer raised its outlook for diluted, underlying earnings per share for the full-year, to a range of between $3.6 and $3.9. In August, it said that it expected EPS of between $3.2 and $3.6 on the same basis. The forecast excludes a one-off gain from a settlement relating to a product recall in 2008.  

This gain inflated the group's nine-month net profits, which soared by 27% to $48.3m. Operating profits, which also include the one-off settlement, rose by 25% to $126.5m.

For the third quarter, Boston Beer reported net profits up by 5.5% to $16.3m. Operating profits rose by 4% to $26.4m, as higher raw materials and selling costs eroded some of the benefits of higher net sales.  

For the company's announcement, click here.