Market research
- First-half net profits leap by 29.7% to US$43.7m
- H1 net sales in six months to end of June rise 8.7% to $451.7m
- Operating profits also jump, by 28% to $68.9m
- H1 volumes increase 6% to 2m barrels
Boston Beer Co has reported a near-one-third leap in net profits for the first six months of the year, despite "developing weakness" in its flagship Samuel Adams brand.
The strong bottom-line performance came on the back of a sales lift of almost 9% in the six months to the end of June, with volumes increasing by 6% on the same period last year.
In the brewer's second-quarter, net sales rose by 9% on the corresponding period a year earlier, to $252.2m, mainly because of core shipment growth - up 7%. Total depletion trends for the second quarter slowed, however, due to declines in some Samuel Adams styles.
For coverage of Boston Beer Co's post-results conference call, click here
Chairman & founder Jim Koch said: "While our total growth is testament to our strategy of a diversified brand portfolio, our Samuel Adams trends appear to represent a very competitive category where drinkers are facing greatly-increased choices and established brands are being impacted."
President & CEO Martin Roper noted that Angry Orchard, Twisted Tea and Traveler helped drive depletions growth in the second quarter, offsetting the "declines in some of our Samuel Adams styles".
On declining styles, Roper said: "Increased competition... particularly impacted Boston Lager and some of our seasonal beers".
"Accordingly," he continued, "we have decreased our expectations for full-year depletions growth to between 6% and 9% to reflect the most recent trends. We are working hard to improve the Sam Adams brand trends and, in the second half of the year, we expect to introduce new packaging and advertising to support our planned promotional activity."
In July, the company unveiled plans to bring its Angry Orchard cider brand to the UK.
To read the company's results statement, click here.
Sectors: Beer & cider, Company results
