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
just-drinks on-trend: Craft beer - fortunes and future
This latest 'on-trend' report from just-drinks provides a strategic summary of where the craft beer category is at present, and where it might be heading in the short-term. Through a combination of sp...read more
In 2013 and the coming years, the company is expected to continue its focus on developing new beers for its flagship Samuel Adams brand, alongside continued innovation of Twisted Tea (available in all...
Beer manufacturers have largely ignored the US cider/perry category as sales have historically been less than a fraction of a percentage of those of beer. However, the contraction of the US beer categ...
Rtds/High-Strength Premixes in the US. In 2013, RTDs/high-strength premixes forged ahead with 13% volume growth, whilst value sales grew by 10% to reach US$5.3 billion....
The analysts in this report forecast the Craft Beer market in the US to grow at a CAGR of 17.46 percent over the period 2012-2016. One of the key factors contributing to this market growth is the chan...
- Comment - How to Target Cognac's Mok Generation?
- Is Marketing Twisting the Meanings of Words?
- Analysis - Keurig Kold fails to impress
- Sustainability - Walking the Walk on Water
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Whyte & Mackay takes on Flor de Caña in UK
- Castel acquires stake in Belvedere
- Brown-Forman eyes family ties with board additions
- Belvedere proposes name change
- Diageo adds to Entourage tie-up - video
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Africa: The Final Frontier for Beer
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review