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Jun 26, 2021
Boston Beer Q2 2021 Earnings Report
Boston Beer's second quarter performance was marked by revenue growth but a slight decrease in net income, influenced by increased operating expenses and lower gross margins.
Key Takeaways
Boston Beer reported a 33.3% increase in net revenue to $602.8 million for the second quarter of 2021. However, net income decreased by 1.6% to $59.2 million, and earnings per diluted share fell by 2.7% to $4.75. The company's performance was impacted by increased operating expenses, lower gross margins, and a higher tax rate, despite a 27.4% increase in shipment growth.
Net revenue increased by 33.3% year-over-year, reaching $602.8 million.
Net income decreased by 1.6% year-over-year, totaling $59.2 million.
Earnings per diluted share decreased by 2.7% year-over-year, resulting in $4.75 per share.
Depletions increased 24% from the comparable period in the prior year.
Forward Guidance
The Company currently projects full year 2021 earnings per diluted share to be between $18.00 and $22.00. This projection excludes the impact of ASU 2016-09.
Positive Outlook
- Depletions and shipments percentage increase between 25% and 40%.
- National price increases of between 1% and 3%.
- Gross margin of between 45% and 47%.
- Increased investments in advertising, promotional and selling expenses of between $80 million and $100 million, a decrease from the previously communicated range of between $130 million and $150 million. This does not include any changes in freight costs for the shipment of products to the Company’s distributors.
- Non-GAAP effective tax rate of approximately 26%, excluding the impact of ASU 2016-09. This effective tax rate also excludes any potential future changes to current federal income tax rates and regulations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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