In This Article:
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Revenue: Slight year-over-year increase, driven by shipments down 2% and two points of price realization.
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Gross Margin: Expanded by 200 basis points to 44.4%; excluding contractual prepayments and shortfall fees, it was 46.1%.
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Non-GAAP EPS: Increased 31% year-over-year to $9.43.
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Free Cash Flow: $173 million or $14.70 per share.
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Share Repurchases: $239 million in shares repurchased in 2024.
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Fourth Quarter Revenue: Increased 2.2% due to price increases and lower returns.
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Fourth Quarter Gross Margin: 39.9%, increased 230 basis points year-over-year.
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Advertising, Promotional, and Selling Expenses: Increased by 8.5% year-over-year in Q4.
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General and Administrative Expenses: Increased by 9.1% year-over-year in Q4.
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Contract Settlement Costs: $26 million or $1.70 per share in Q4.
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Non-GAAP Loss Per Diluted Share: $1.68 in Q4, excluding contract settlement costs.
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2025 Guidance - Gross Margin: Expected between 45% and 47%.
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2025 Guidance - Earnings Per Diluted Share: Targeting between $8.10 and $8.50.
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2025 Capital Expenditures: Expected between $90 million and $110 million.
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Cash Balance: $212 million at the end of the quarter.
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Share Repurchase Authorization Remaining: Approximately $398 million as of February 21, 2025.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Boston Beer Co Inc (NYSE:SAM) achieved a 31% growth in non-GAAP EPS, supported by a 200 basis point expansion in gross margin.
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The company generated $173 million in free cash flow, allowing for $239 million in share repurchases in 2024.
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Twisted Tea continues to grow its market share, holding an 84% share in the hard tea category and contributing significantly to the category's dollar growth.
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The national expansion of Sun Cruiser is underway, with positive performance in initial markets and plans to triple distribution points by mid-2025.
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Boston Beer Co Inc (NYSE:SAM) is investing in advertising and marketing to support brand growth, with a focus on innovation and expanding market share.
Negative Points
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The hard seltzer category is facing headwinds, with category dollars down 4% in the fourth quarter.
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Depletions in the fourth quarter were flat, and shipments decreased by 0.5% from the prior year.
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The company anticipates potential volatility in the volume environment due to dynamic consumer demand.
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Increased advertising investments are expected to dampen 2025 operating income growth.
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The company faces challenges from increased competition in the 'beyond beer' category and potential impacts from health and wellness trends.