Tag Archives: Boston Beer

News: Boston Beer swings to 3rd-qtr loss as costs rise

080402_sam_adams_beer_logoThe Associated Press is reporting that Boston Beer Co., which brews Samuel Adams beer and other beverages, on Tuesday reported a third-quarter loss, reversing a year-ago profit, as costs for ingredients and packaging materials rose. The company also opened a new brewery, booked more charges related to a recall earlier this year and cut its profit forecast for the full year, sending shares falling in aftermarket trading. For the three months ended Sept. 27, the brewer said it lost $295,000, or 2 cents per share, compared with a profit of $3.2 million, or 21 cents per share, in the corresponding period a year ago. The results included a charge of $1.2 million, 8 cents per share, resulting from shortfall fees at other brewers as a result of moving some production to its new Pennsylvania Brewery, and $1.2 million, or 8 cents per share, resulting from additional costs of a recall of certain glass bottles in April.

Revenue rose 20 percent to $101.1 million, from $84.1 million last year. Analysts polled by Thomson Reuters, on average, expected profit of 28 cents per share, on revenue of $102.5 million. Boston Beer said sales of cases to retailers rose by 12 percent for the quarter, and that pricing has increased about 5 percent year to date. The company recorded double-digit growth in Samuel Adams seasonal beers, Twisted Tea and its Samuel Adams Brewmaster’s Collection. The company said it expects minimal charges from the recall in 2009. Recall costs rose to $22.9 million, from the previously announced $20.6 million, due to more returns than expected. About 790,000 cases have been returned as a result of the recall, and 200,000 other cases were pulled out of circulation before being shipped. Boston Beer spent $33.1 million on improvements to the brewery near Allentown, Pa. As a result of moving production to the new site, the company will not meet minimum production requirements spelled out in deals with some other brewing companies, resulting in the charge. Shortfall fees in 2009, if any, “will be significantly less,” the brewer said.