USA: Boston Beer reports decreased shipments in Q2 2024

The Boston Beer Company, Inc. on July 25 reported financial results for the second quarter ended June 29, 2024. Key results were:

Second Quarter 2024 Summary:

• Depletions decreased 4% and shipments decreased 6.4%
• Net revenue of $579.1 million decreased 4.0%
• Gross margin of 46.0% up 60 basis points year over year
• Net income of $52.3 million, a decrease of $5.7 million or 9.8%
• Diluted income per share of $4.39

Year-to-date 2024 Summary:

• Depletions decreased 2% and shipments decreased 3.4%
• Net revenue of $1.005 billion decreased 0.8%
• Gross margin of 45.0% up 260 basis points year over year
• Net income of $64.9 million, an increase of $15.9 million or 32.3%
• Diluted income per share of $5.41

Capital Structure

• Ended the first quarter with $219.3 million in cash and no debt
• Repurchased $127.0 million in shares from January 2, 2024 to July 19, 2024

“Our gross margin improvement initiatives continue to take hold, with gross margin expanding over 250 basis points year-to-date, and strong cash flow generation,” said Chairman and Founder Jim Koch. “Depletions were soft in April, but improved as we moved through the quarter. While the industry environment remains dynamic, we are seeing early signs of progress on innovation and will use our strong balance sheet to invest in our brands while returning cash to shareholders.”

“I’m pleased to have completed my first quarter as Boston Beer’s CEO and believe there are many areas of opportunity ahead for the company,” said President and CEO Michael Spillane. “We are revising our volume guidance to reflect softer category performance in the second quarter and timing of product launches, while maintaining our EPS guidance supported by progress on our transformation efforts. Our entire organization will be focused on optimizing all aspects of execution and launching accretive innovation to provide the foundation for a future return to growth.”

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