Boston Beer Company has booked an impairment in the second quarter of its fiscal 2025, but has also proceeded to raise guidance for its gross margin in the year.
According to the US brewer’s latest financial results, it booked an impairment of of its brewery assets of $5m, a $1.6m increase from the comparable period of 2024, attributed “to higher write-offs of equipment at third party and company-owned breweries”.
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The group said it would also raise guidance for it’s gross profit margin (excluding tariffs) from 45%-48% to 47%-48%. Including tariffs this has gone up from 44%-46.5%, to 46%- 47.3%.
Boston Beer has also lowered its capital spending forecast for its full year from $90m-$110m to $70m-$90m.
It said the move came “as we continue to see positive impacts from our multi-year margin enhancement initiatives”.
The US brewer saw net revenue increase 1.5% to $587.9m in its second quarter to the end of June. Net income reached $60.4m, an increase of $8.1m or 15.5% year over year.
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By GlobalDataThe group’s shipments declined 0.8% year-on-year, while depletions declined 5% for the three-month period ending June 28.
Last year, the US brewer reported a non-cash impairment linked mainly to its Dogfish Head brand, which it acquired in 2020.
The move followed a review of the “latest forecasts of brand performance” in September, which was “below our projections made on the acquisition date”, the group said in a statement at the time.
The company’s shipment volume for the second quarter was approximately 2.1 million barrels, a 0.8% decrease from 2024, primarily due to declines in Truly Hard Seltzer and Samuel Adams brands that were “partially offset” by growth in the company’s Sun Cruiser and Dogfish Head brands.
Meanwhile, for the 26 weeks to end of June 2025, the company reported revenue year-to-date of $1bn, rising 3.6% compared to year-to-date 2024 due to increased volume, increased pricing, and a “favourable product mix.”
Net income sat at $84.8m, a 30.7% increase on year-to-date figures in 2024.
In its latest results, the business also adjusted its anticipated full-year total cost impact from tariffs. It now anticipates tariffs to cost the business $15 to $20m, a drop from its prior $20 to $30m estimate, which wasn’t previously in its guidance, it said.
