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Mar 27, 2021
Boston Beer Q1 2021 Earnings Report
Reported a strong start to the year with record first quarter shipment and depletion volumes.
Key Takeaways
Boston Beer reported a significant increase in first quarter 2021 net revenue, net income, and earnings per diluted share compared to the same period last year, driven by increased shipments and depletions, particularly in Truly Hard Seltzer and Twisted Tea brands.
Net revenue increased by 64.9% year-over-year, reaching $545.1 million.
Net income increased by 259.6% year-over-year, totaling $65.6 million.
Earnings per diluted share increased by 253.0% year-over-year, reaching $5.26.
Depletions increased 48% from the comparable period in the prior year.
Boston Beer
Boston Beer
Forward Guidance
The Company projects full year 2021 Non-GAAP earnings per diluted share of between $22.00 and $26.00 and depletions and shipments percentage increase between 40% and 50%.
Positive Outlook
- Depletions and shipments percentage increase between 40% and 50%.
- National price increases of between 1% and 3%.
- Gross margin of between 45% and 47%.
- Non-GAAP effective tax rate of approximately 26.5%, excluding the impact of ASU 2016-09.
- Estimated capital spending of between $250 million and $350 million.
Challenges Ahead
- The Company’s actual 2021 earnings per share could vary significantly from the current projection.
- Non-GAAP measures should not be considered in isolation or as a substitute for diluted earnings per share and effective tax rate data prepared in accordance with GAAP.
- Non-GAAP effective tax rate and Non-GAAP earnings per diluted share exclude the impact of ASU 2016-09, which could be significant and will depend largely upon unpredictable future events outside the Company’s control
- Meeting these higher volumes through increased usage of third-party breweries has a negative impact on our gross margins.
- Gross margins and gross margin expectations will continue to be impacted negatively until our volume growth stabilizes.