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Jun 29, 2024
Boston Beer Q2 2024 Earnings Report
Reported a decrease in net revenue, depletions and shipments, but an increase in gross margin.
Key Takeaways
Boston Beer's second quarter saw a decrease in depletions and shipments, leading to a slight revenue decline. However, gross margin improved due to price increases and cost management. The company is revising its volume guidance but maintaining EPS guidance.
Depletions decreased 4% and shipments decreased 6.4%.
Net revenue decreased 4.0% to $579.1 million.
Gross margin increased to 46.0%, up 60 basis points year over year.
Net income decreased 9.8% to $52.3 million, with diluted income per share at $4.39.
Forward Guidance
The Company has updated its full year guidance and the Company’s actual 2024 results could vary significantly from the current projection and are highly sensitive to changes in volume projections and supply chain performance as well as inflationary impacts.
Positive Outlook
- Price Increases 1% to 2%
- Gross Margin 43% to 45%
- Advertising, Promotion, and Selling Expense Year Over Year Change ($ million) ($5) to $15
- Effective Tax Rate 28.5%
- GAAP EPS $7.00 to $11.00
Challenges Ahead
- Depletions and Shipments Percentage Change Down low single digit to zero
- The advertising, selling and promotional expense projection does not include any changes in freight costs for the shipment of products to the Company’s distributors
- During full year 2024, the Company estimates shortfall fees will negatively impact gross margin by 50 to 75 basis points
Historical Earnings Impact
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Avg. Return Before/After Earnings
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