USA: Boston Beer second quarter profit declines

Boston Beer Co., Inc. reported on August, 2 a sharp decline in profit for the second quarter, amid higher expenses and the absence of last year's gain.

Net income declined to $14.35 mln or $1.06 per share from $28.02 mln or $2.01 per share in the prior year. Last year's earnings benefited from a $20.5 mln gain from settlement proceeds.

Excluding the 2011 impact of the recall settlement and the estimated 2012 negative impact of the Freshest Beer Program on shipment volume, earnings per share was $1.19.

Revenues totalled $147.5 mln, up 10 percent from $133.96 mln last year, mainly due to core shipment growth. Analysts expected revenues of $152.49 mln.

Barrels sold climbed to 696 thousand from 651 thousand. Depletions grew 7 percent, primarily due to increases in Angry Orchard, Twisted Tea and Samuel Adams Seasonals that were partially offset by declines in some other Samuel Adams styles and the timing of the July 4 holiday.

Operating expenses increased to $56.9 mln from $31.2 mln last year. Advertising, promotional and selling expense increased 9 percent.

Looking ahead to fiscal year 2012, the company re-affirmed its earnings guidance range of $3.80 to $4.20 per share. Analysts currently expect the company to report full year earnings of $4.20 per share.

03 August, 2012