Boston Beer Company announces 2Q results - Brief Article - Company Profile - Statistical Data Included

Modern Brewery Age,  July 30, 2001  

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The Boston Beer Company, Inc. has announced its results for the quarter ended June 30, 2001. During the second quarter of 2001, barrels sold and net sales were 304,000 and $48.6 million, respectively, compared to 336,000 and $51.4 million during the same period in 2000. The Company's gross profit margin for the quarter improved to 60.1%, up from 56.8% in 2000 due to increased pricing, product mix changes, a one-time recovery of $400,000, and reduced hop cancellation fees. Earnings for the quarter ended June 30, 2001 were S.29 per share compared to S.19 per share for the quarter ended June 24, 2000.

For the six months ended June 30, 2001, barrels sold decreased 8.3% to 574,000 from 626,000 in the same period of 2000. Net sales decreased to $90.3 million in the first half of 2001 from $95.7 million in the first half of 2000. The Company posted a 59.2% gross profit margin for the six month period versus 56.3% in 2000.

Depletions of Samuel Adams Boston Lager and Samuel Adams Seasonals decreased 4% as compared to the prior year quarter. Declines in depletions of certain other year-round styles contributed to the 7% decrease in total depletions of core brands for the quarter.

Company executives said that Boston Beer continues to focus the majority of its sales and marketing resources on its flagship product, Samuel Adams Boston Lager. Boston Beer execs reported that orders in hand suggest that core business shipments for July/August 2001 will be down 3% compared to July/August 2000. Actual beer shipments for July and August 2001 may differ, they noted.

Operating income was $7.7 million for the second quarter of 2001 compared to $5.6 million in the prior year quarter. Total advertising, promotional and selling expenditures decreased 10.8% during the second quarter of 2001 compared to 2000 due to a delay in media spending while the Boston Beer Company developed new media. Net income was $4.7 million for the second quarter of 2001 compared to $3.5 million for the second quarter of the year 2000.

Company execs said the Boston Beer Company continues to pursue "sustainable brand growth strategies." During the second quarter, these included continuing media creative development around the Samuel Adams Brand positioning of "America's World Class Beer," the completion of radio promoting Samuel Adams' support of Project Greenlight, the initiation of testing of new Samuel Adams Boston Lager packaging in certain markets in the U.S., and preparation for the launch of Sam Adams Light in two markets in mid-July.

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