Boston Beer Co. Drops Following Lower Shipment Growth View

- Advertisement -


by Denny Jacob

- Advertisement -
- Advertisement -

Shares of Boston Beer Company fell 7.97% in late trading after Brewer lowered its annual earnings outlook as interest in hard seltzers like Trulli continued and gross margins were expected to be hurt by supply chain issues. have hope.

The company forecasts earnings per share for 2021 to be between a loss of $1 and a gain of $1. It had previously guided for earnings per share between $2 and $6.

- Advertisement -

The company’s lower outlook was driven by higher-than-expected reductions in inventory from wholesalers and supply chain costs.

The company’s current projections for 2021 include estimates that shipments will grow between 15% and 16% and that national value growth will be between 2% and 3%.

In July, founder and chairman C. James Koch said that a mature market and new hard seltzer brands resulted in “a proliferation and consumer confusion.”

On Thursday, the company said consumer demand for its products has been at the high end of its expectations since its last guidance update in October 2021.

The Boston-based company’s initial guidance for 2022 hasn’t changed since October. It expects reduction and shipment percentage growth to be between the mid-single digits and low double digits, with national value rising between 3% and 6%, and gross margin falling between 45% and 48%.

The maker of the Samuel Adams beer is down 47% over the past year, while the S&P 500 index is up nearly 26% during the same period.

Write to Denny Jacob at [email protected]

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox