• H1 net profits drop 23% to US$33.6m
  • Net sales in six months to 25 June dip 4% to $463.2m
  • Operating profits fall 22% to $53m
  • H1 volumes drop 5%
  • Q2 net profits down 10% to $26.6m
  • Net sales in second quarter decline 3% to $261.2m
  • Quarterly operating profits down 11% to $41.7m
  • Q2 volumes decline 4%
New launches such as Samuel Adams Nitro have failed to outpace Boston Beers losses

New launches such as Samuel Adams Nitro have failed to outpace Boston Beer's losses

Boston Beer Co's poor year has continued as first-half sales, profits volumes and market share all declined, albeit at a slower rate than in Q1.

In H1 results announced yesterday, the brewer - in its third consecutive quarter of decline - further reduced its projections for the year as it admitted craft competition had again cut into performance. It now expects a FY depletions and shipments percentage change of between -4% and zero compared to a Q1 outlook of between -4 and +2.

Net profits dropped 23% to US$33.6m in the 26 weeks to 25 June while net sales dipped 4% to $463.2m. Half-year operating profits fell 22% to $53m.

Second quarter results were less severe, though, with net profits down 10% to $26.6m and net sales declining 3% to $261.2m.

In volume terms, the half-year was down by 5% while Q2 volumes declined 4%.

"Our total company depletion trends declined in the second quarter at a rate consistent with the first quarter trends, even as the better beer and craft categories appear healthy," said Boston Beer chairman & founder Jim Koch. "Our Samuel Adams brand lost share of craft due to the increased competition and continued growth of drinker interest in trying new styles. While the launches of our new beers, including the Samuel Adams Nitro Project and Samuel Adams Rebel Grapefruit IPA, have been successful and well-received, they have not offset declines in Samuel Adams Boston Lager and our Samuel Adams seasonal beers."

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The company said decreases for its Samuel Adams, Angry Orchard and Traveler brands were only partially offset by increases in its Twisted Tea, Coney Island and Truly Spiked & Sparkling brands.

"The trends for larger craft beer brands and the hard cider category, and the full impact of our new brand introductions remain difficult to predict," it added.

Boston beer released its results after markets closed yesterday. In after-hours trading, the company's stock price was up by 2.6% after a decline ahead of the announcement.

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

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