US: Boston Beer Q4 income rockets, profit drops
Boston Beer Co. has seen Q4 net income soar by 75%, while net revenue fell by 6.5%. The microbrewery earned US$3.62m for the quarter, the equivalent of 25 cents a share, compared to $2.07m, 13 cents a share a year ago, when the launch of Sam Adams Light inflated advertising, selling and promotion expenses.
Expenses for advertising, selling and promotion for the quarter dropped by 19.2%, to $20.3m from $25.1m last year.
Quarterly net revenue fell by 6.5% to $50.8m from $54.3m, while shipments also fell, by 6.3% to 302,639 barrels from 322,992 barrels. The brewer credits the drop in shipments to the decline in the rollout of the light beer in the fourth quarter a year ago.
Gross margin for Q4 fell to 56.6% of net revenue from 57.8% year-on-year. Looking forward, Boston Beer expects gross margins to be maintained, based on expected price increases and current cost pressures.
Sectors: Beer & cider
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