US: Boston Beer in strong position after H1

By | 8 August 2007

The Boston Beer Company has reported record second quarter net revenue of US$92.9m, an increase of 17.1% over the same period last year, as volumes and revenue per barrel increased.

However, hit by a write off of $3.4m for the capitalised brewery costs related to the company's Freetown, Massachusetts brewery project, second quarter earnings per diluted share were $0.46, a decrease of $0.10 over the second quarter 2006.

The group said yesterday (7 August) that the net revenue increase in the second quarter was primarily driven by a 14.6% core shipment volume increase and an increase in revenue per barrel of approximately 2%.

For the first six months of 2007, earnings per diluted share were $0.86, an increase of $0.17 over 2006. Net revenue increased by 21.4% to $165.3m during the period as compared to the same period 2006.

Jim Koch, chairman and founder of the company said: "We feel very positive about our second quarter depletions growth of 16%. This was our sixth successive quarter of double digit increases. We believe these results are driven by drinkers trading up to our full flavored craft beers and increasing retailer and wholesaler support for the craft category and Samuel Adams. This is a great time to be an American beer drinker due to the variety and availability of so many great craft beers. I believe that the quality and variety of distinct beers that Samuel Adams brews positions us well to meet drinker tastes."

Martin Roper, Boston Beer Company president and CEO, added: "Our second quarter depletions growth reflected double digit growth in the Samuel Adams brand family, offset by a slight decline in the Twisted Tea brand family."

Roper, commenting on the full year prospects said: "We currently expect that, if our volume gains continue for the rest of the year, we will be able to meet or even exceed our previously communicated earnings goals even after including the asset write-off of brewery costs we took in the second quarter. We still face significant pressures from increasing barley and hops prices and increased glass, freight and utilities costs. We are excited to start our due diligence process with respect to the Lehigh Valley, Pennsylvania brewery but we will not fully understand the viability and cost impact of this brewery until that process is complete. We continue to assess the available combinations of supply strategies. We will also continue to evaluate appropriate levels of capital investment and investment in our brand to meet long-term growth goals."

Sectors: Beer & cider

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