The following is a summary of the The Boston Beer Company, Inc. (SAM) Q1 2024 Earnings Call Transcript:
Financial Performance:
The Boston Beer Company reported flat depletions and a 3.9% increase in revenue in Q1 2024, driven by higher volume, pricing, and lower returns.
Gross margin for Q1 was significantly up at 43.7%, a 570 basis points increase YoY.
The company repurchased $65 million worth of stock in 2024.
Q1 2024 EPS was $1.04 per diluted share, up from a net loss of $0.73 per diluted share in Q1 2023.
The company ended the quarter with a cash balance of $205.4 million, and an unused credit line of $150 million is available.
For 2024, The Boston Beer Company expects capital expenditures to range between $90 million to $110 million.
Business Progress:
The company has experienced strong momentum within its Twisted Tea brand and reported steady progress on margin enhancement initiatives.
The strategy for long-term growth includes investment in brands and continuous innovation, particularly in Beyond Beer.
Twisted Tea saw a 21% increase in dollar sales in Q1 and the company is fostering their portfolio of core brands.
The company plans to improve internal production to drive cost efficiencies, and has plans for multiple product rollouts.
Planning for wider distribution of Hard Mountain Dew is in progress after distributor roles are transitioned.
In 2024, the volume guidance for depletions and shipments is estimated to range from a low single-digit decrease to a low single-digit increase. Full-year gross margins are expected to be between 43% to 45%.
More details: Boston Beer IR
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