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Sep 28, 2024
Boston Beer Q3 2024 Earnings Report
Reported a slight revenue increase and earnings decrease due to brand impairment.
Key Takeaways
Boston Beer reported a 0.6% increase in net revenue to $605.5 million. GAAP diluted earnings per share was $2.86, including a non-cash brand impairment charge of $2.49 per share. Non-GAAP diluted earnings per share was $5.35. Depletions decreased by 3% and shipments decreased by 1.9%.
Net revenue increased 0.6% to $605.5 million.
GAAP diluted earnings per share was $2.86, including a non-cash brand impairment charge of $2.49 per share.
Non-GAAP diluted earnings per share was $5.35.
Gross margin increased 60 basis points year over year to 46.3%.
Boston Beer
Boston Beer
Forward Guidance
The Company has updated its full year guidance. Full Year 2024 Current Guidance Prior Guidance Depletions and Shipments Percentage Decrease Down low single digits Down low single digit to zero Price Increases 2% 1% to 2% Gross Margin 44% to 45% 43% to 45% Advertising, Promotion, and Selling Expense Year Over Year Change ($ million) ($5) to $15 ($5) to $15 Effective Tax Rate 30% 28.5% GAAP EPS $5.50 to $7.50 $7.00 to $11.00 Non-GAAP EPS $8.00 to $10.00 - Capital Spending ($ million) $80 to $95 $90 to $110
Positive Outlook
- Depletions and Shipments Percentage Decrease Down low single digits
- Price Increases 2%
- Gross Margin 44% to 45%
- Advertising, Promotion, and Selling Expense Year Over Year Change ($ million) ($5) to $15
- Effective Tax Rate 30%
Challenges Ahead
- GAAP EPS $5.50 to $7.50
- Non-GAAP EPS $8.00 to $10.00
- Capital Spending ($ million) $80 to $95
- The Company’s business is seasonal, with the first quarter and fourth quarter being lower volume quarters and the fourth quarter typically the lowest absolute gross margin rate of the year.
- The increase in the estimated full year effective tax rate is due to the impact of the third quarter non-cash brand impairment charge which decreased estimated full year pre-tax income but did not significantly change estimated full year non-deductible expenses.