US: Boston Beer Co ends 2012 with rising sales but dipping profits
- FY net profits slip by 10% to US$59.5m
- Net sales in 2012 rise by 13.1% to $580.2m
- Operating profits fall by 7.8% to $95.6m
- Volumes in the year increase by 10.5% to 2.7m barrels
Boston Beer will hope its Samuel Adams brand will continue to drive sales in 2013
Boston Beer Co has seen its full-year profits slip on rising costs, as both sales and volumes delivered growth.
The Samuel Adams brewer said late yesterday (20 February) that net profits last year were down by 10% on 2011, at US$59.5m, with sales climbing by 13.1% to $580.2m. Operating profits also fell, by 7.8% to $95.6m.
The full-year performance remained in line with the numbers reported in November for the first nine months of 2012. The brewer's bottom line was hit by a greater spend last year - $12m more than 2011 - on "increased investments in advertising and local marketing and sales personnel, and increased costs of freight to wholesalers".
For the last three months of 2012, net profits slipped by 5.1% to 16.9m, while sales rose by 7.6% to $153m. Operating profits in Q4 were up, however, by 4.9% at $27m.
The brewer blamed the profits dip in the three-month period on "the favourable impact of a state income tax settlement in the 2011 fourth quarter", and the loss of one week.
Having raised its full-year earnings per diluted share forecast in December to between $4.30 and $4.60, Boston Beer saw its EPS come in at $4.39.
Company founder and chairman Jim Koch said: "I am pleased that in 2012 The Boston Beer Company continued to help lead the craft beer industry both in innovation and variety."
Looking forward, Boston Beer said it expects full-year 2013 earnings per diluted share to come in between $4.70 and $5.10, on the basis of a 10% to 15% rise in volumes.
To read the company's official statement, click here.
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