US: Boston Beer Co warns of tough FY, but Q1 profits jump
- Q1 net profits leap by 89.3% to US$7.5m
- Sales in the three months to end of March also rise, by 10.9% to $113.3m
- Operating profits perform similarly, increasing by 80% to $11.8m
- FY forecast unchanged, but cost pressure causing concern
Boston Beer Co posted a strong set of Q1 numbers today
Boston Beer Co has posted a strong rise in Q1 sales and profits, but warned that its performance in the rest of 2012 may be hit by "significant" cost pressure.
The US-based craft beer brewer, which owns the Samuel Adams brand, said yesterday (2 May) that net profits in the three months to the end of March increased by 89.3% on the same period a year ago, coming in at US$7.5m. Sales were up by 10.9% to $113.3m, driven by a 7.4% lift in volumes.
Operating profits were equally impressive, rising by 80% to $11.8m.
Boston Beer noted that it achieved planned price increases for the year in the first quarter, increasing them by around 3%.
Looking forward, the brewer said that its full-year earnings per diluted share forecast of between $3.80 and $4.20 remains unchanged. However, the company warned that it is "currently concerned about significant cost pressure from fuel price increases and their impact on freight costs, package material and brewery operating costs".
"(Boston Beer) believes that it is too early in the year to assess the extent to which the full-year increased fuel costs may be offset by operating efficiencies, pricing or volume growth, or the possibility that these pressures may subside," the company added.
To read Boston Beer's official announcement, click here.
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