US: Boston Beer Co toasts Q2 as H1 profits rise

By James Wilmore | 1 August 2013

First-half net profits jump 22% to US$26.6m
H1 net sales up 22% to $317.3m
Operating profits rise 18% to $41.7m
Volumes of newly-launched Samuel Adams in a can “in line with expectations”

Boston Beer Co has reported a healthy first-half

Boston Beer Co has seen a significant recovery in its second-quarter to reported a healthy jump in first-half profits, despite a rise in advertising and promotional costs.

Net profits in the six months to the end of June jumped by 37.4% to US$19.7m, the Samuel Adams brewer said today (1 August). Sales in the period were up by 22% to $194.9m, while operating profits leapt by 36.7% to $32m.

In Q2, net profits rose by 37.4% to $19.7m, while sales were up 23% to $181.3. Operating profits in the three months increased by 36.7% to $32m.

The second-quarter performance was in contrast to a poor first quarter for the brewer.

Boston Beer put its Q2 performance down to core shipment growth of 21%. However, this was offset by a 21% year-on-year rise in advertising, promotional and selling expenses.

“We believe that our depletions growth is attributable to strong sales execution and support from our wholesalers and retailers as well as our great quality beers and strong brands,” said Boston Beer's founder & chairman, Jim Koch.

He added: “During the quarter we released Samuel Adams Boston Lager and Samuel Adams Summer Ale packaged in our new unique can which has been well received by wholesalers and drinkers and is generally in line with our expectations from a volume perspective.”

Plans for the 'Sam Can' were first revealed in February.

Looking forward, the group increased its earnings-per-diluted-share outlook for 2013 to between $5.10 and $5.40.

To read the company's full statement, click here.

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Sectors: Beer & cider, Company results