March 12th, 2008
Boston Beer Profit Soars
March 11, 2008, 3:23PM
From 2008 The Associated Press
BOSTON — Boston Beer Co. Inc. said Tuesday its fourth-quarter profit more than doubled as the company sold more barrels of beer and consumers increasingly chose its Samuel Adams brews.
For the quarter ended Dec. 29, net income jumped to $6.8 million, or 46 cents per share, from $2.5 million, or 17 cents per share, in the prior year quarter.
Analysts polled by Thomson Financial expected earnings of 35 cents per share.
The profit gain came despite a 21 percent rise in the cost of goods. Brewers have all been hit hard by higher costs for barley, hops and malt _ all key ingredients in making beer.
Revenue rose 26 percent to $92.2 million from $73.3 million in the fourth quarter of 2006. Analysts predicted revenue of $88.9 million.
The company also said it sold about 20 percent more barrels in the quarter. Revenue per barrel rose about 5 percent in the quarter, helped by price increases and a drop in discounts.
Chairman Jim Koch credited the company’s performance to drinkers trading up to craft beers, the strength of the Samuel Adams brands and increasing retailer and wholesale support for the craft category and Samuel Adams.
Craft beers have been a bright spot in the beer industry as more drinkers experiment with new craft varieties.
The company said its Twisted Tea brand also performed well in the quarter.
For the year, profit grew 24 percent to $22.5 million, or $1.53 per share, from $18.2 million, or $1.27 per share, in the prior year.
Revenue grew 20 percent to $341.6 million from $285.4 million in 2006.
Boston Beer shares rose $2.02, or 6 percent, to close at $35.81.