Boston Beer Company increased sales in the Second Quarter of 2008
Boston Beer posts profit jump as sales increase
BOSTON – The Boston Beer Co., the Sam Adams brewer, posted a 25 percent rise in second-quarter profit, due in part to higher sales of craft beers.
For the quarter ended June 28, the company earned $8.5 million, or 60 cents per share. That was up from $6.8 million, or 14 cents per share, in the same quarter last year, when the brewer wrote off $3.4 million in costs related to a new brewery in Freetown.
Revenue during the second quarter of 2008 revenue rose by 26 percent to $117.4 million.
Boston Beer (nyse: SAM – news – people ) said sales of cases to retailers rose by 8 percent for the quarter, and that pricing has increased about 5 percent year to date.
Growth in case sales “slowed slightly in the first half of the summer, but we still appear to be growing our share within the craft beer category,” said Chairman Jim Koch. “We are encouraged by our position and remain positive about the future of craft beer, even as the craft category has raised pricing in the face of significant cost pressures.”
In April, Boston Beer voluntarily recalled certain glass bottles after grains of glass were found in some. Costs related to the recall amounted to $20.6 million in the second quarter, up from the previously announced $15 million.
Boston Beers shares closed up 13 cents at $43.83 on Tuesday.