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Jul 01, 2023
Boston Beer Q2 2023 Earnings Report
Reported financial results, reflecting a decrease in net revenue but an increase in net income and gross margin.
Key Takeaways
Boston Beer reported a decrease in net revenue by 2.1% to $603.3 million, but net income increased by 8.8% to $58.0 million. Gross margin improved by 230 basis points to 45.4%.
Depletions decreased 3%.
Shipments decreased 4.5%.
Net revenue decreased 2.1% to $603.3 million.
Gross margin increased 230 basis points to 45.4%.
Forward Guidance
The Company is maintaining the full year volume and earnings guidance previously communicated in its April 25, 2023 Earnings Release and increasing its Advertising, Promotion and Selling Expense guidance.
Positive Outlook
- Depletions Decreases (2%) to (8%)
- Shipments Decreases (2%) to (8%)
- Price Increases 1% to 3%
- Gross Margin 41% to 43%
- Advertising, Promotion, and Selling Expense YoY Change ($ million) $20 to $40
Challenges Ahead
- The Company’s actual 2023 results could vary significantly from the current projection and are highly sensitive to changes in volume projections particularly related to the hard seltzer category and supply chain performance as well as inflationary impacts.
- The 2023 fiscal year includes 52 weeks compared to the 2022 fiscal year which included 53 weeks.
- The Company’s guidance on depletions and shipments includes the estimated negative impact of approximately 1.0 percentage point due to the fact that fiscal 2022 had 53 weeks and fiscal 2023 will have 52 weeks. On a 52-week comparable basis the Company expects depletions and shipments to decrease 1% to 7%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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