News

US: Increased marketing spend raises sales, hampers profits in Boston Beer Company Q1

Most popular

How COVID has changed consumers' shopping habits

COVID is opening up aged spirits to a new world

How COVID has driven at-home indulgence - trends

Pernod Ricard Performance Trends 2016-2020 - data

PepsiCo's Driftwell launch a seachange for drinks

MORE
  • Q1 net profits plunge by 36.8% to US$3.9m
  • Sales increase by 8.7% to 102.2m
  • Operating profits drop by 36% to $6.6m
  • Marketing investment drags profits south

The Boston Beer Company has seen its Q1 profits hammered by “increased investments in advertising, promotional and selling expenses”, which helped increase sales in the period.

//i4.aroq.com/1/logobostonbeer_001.png

The US craft brewer, which owns the Samuel Adams Boston Lager brand, said yesterday (5 May) that net profits for the three months to the end of March came in 36.8% down on a year earlier, at US$3.9m. Sales rose, however, by 8.7% to $102.2m and by 10% in volume terms to 502 barrels. Operating profits struggled, falling by 36% to $6.6m.

The company blamed its depressed profits on its advertising, promotional and selling expenses, which increased by 22% for the quarter, “primarily due to planned increased investments behind the company's brands”.

The brewer maintained its projection of 2011 earnings per diluted share of between $3.45 and $3.95. “While the company is currently concerned about significant cost pressure from fuel price increases and their impact on freight costs, package material and brewery operating costs,” it said, “it believes that it is too early in the year to assess the extent to which the increased fuel costs may be offset by operating efficiencies, pricing or volume growth, or the possibility that these pressures may subside.”

To read Boston Beer Company's official release, click here.


Related Content

AG Barr hatches streamlining plans as H1 sales, profits slump

AG Barr hatches streamlining plans as H1 sales, profits slump ...

The Boston Beer Co upbeat on 2018 as 2017 sales dip continues - results

The Boston Beer Co upbeat on 2018 as 2017 sales dip continues - results...

Heineken Q1 2020 - Volumes dip 2.1%, slide 14% in March - results data

Heineken Q1 2020 - Volumes dip 2.1%, slide 14% in March - results data...

PepsiCo pledges soda spend as North America Beverages sales suffer Q1 dip - results

PepsiCo pledges soda spend as North America Beverages sales suffer Q1 dip - results...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?