Boston Beer, the brewer of popular beverages such as Sam Adams, announced a rise in third-quarter profit thanks to lower costs and expenses. The company reported a profit of $45.3 million, or $3.70 a share, for the period ended Sept. 30, compared to $27.3 million, or $2.21 a share, in the previous year. Analysts had predicted earnings of $4.08 per share, according to FactSet.
Revenue Growth and Expectations
Revenue saw a slight increase of 0.9%, reaching $601.6 million compared to $596.5 million in the previous year, surpassing analysts' expectations of $594 million.
Decreases in Depletions and Shipment Volume
Depletions, a crucial metric that indicates sales from distributors to retailers and serves as an indicator of demand, experienced a decline of 6% compared to the prior year. This decrease was primarily due to declines in Truly, Angry Orchard, Samuel Adams, and Dogfish Head brands. However, there were partial offsets from increases in Twisted Tea and Hard Mountain Dew brands. Shipment volume also fell by 2.5% to approximately 2.3 million barrels in comparison to the previous year.
Cost Reduction and Decrease in Operating Expenses
The company's cost of goods sold decreased to $327 million from $338.7 million in the prior year. Similarly, total operating expenses fell to $213.1 million from $219.4 million during the same period.
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