US: Boston Beer Co Q1 sales, profits soar
- First-quarter net profits up 20.3% to US$8.3m
- Net sales rise 35.2% to $183.8m
- Operating profits rise 38.3% to $13.4m
- FY profits estimate unchanged
Boston saw strong sales in its first quarter
Boston Beer Company has seen a strong lift in first-quarter sales and profits, partly boosted by the national rollout of its Samuel Adams Rebel IPA brand.
The brewer, the US' biggest craft beer producer by volume, said yesterday (30 April) that net profits in the three months to the end of March rose by 20.3% to US$8.3m. Sales in the period were up by 35.2% to $183.8m, while operating profits leapt by 38.3% to $13.4m.
Volumes in the quarter climbed by 31.8% to 838,000 barrels.
Boston flagged shipment increases for the boost in its bottom line in this year's first quarter. This was offset, however, by higher advertising, promotional and selling expenses and a federal income tax settlement.
“Our depletions growth benefited from the strength in our Samuel Adams, Angry Orchard and Twisted Tea brands,” said the group's president & CEO, Martin Roper. “The Samuel Adams brand benefited from our 30th Anniversary celebration, the rollout of Rebel IPA and the strength of our seasonal beers.”
Rebel IPA is already among the US' top three selling IPAs in the off-trade, according to industry data, flagged by Boston.
However, Roper added: “We do not expect that the depletions growth rates we experienced in the first quarter will be maintained for the remainder of the year, as we face tougher comparables and the first-quarter benefit from new product launches is unlikely to be replicated during the balance of 2014.”
The company said it is maintaining its earnings projection per diluted share of between $6 and $6.40 for the full fiscal year.
Boston's share's rose by 4% in trading yesterday.
To read the brewer's full statement, click here
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