Boston Beer showed negative growth in third quarter financial reports, with core brands all down with the exception of Twisted Tea and Hard Mountain Dew.
Depletions in the third quarter decreased 6% from the prior year, reflecting decreases in Truly, Angry Orchard, Samuel Adams and Dogfish Head brands. Twisted Tea and Hard Mountain Dew brands both showed positive growth.
Shipment volume for the quarter was approximately 2.3 million barrels, a 2.5% decrease from the prior year.
Depletions year-to-date decreased 5% from year-to-date 2022 while shipment volume year-to-date was approximately 6.2 million barrels, a 4.6% decrease from year-to-date 2022,
“On a comparable week’s basis, which adjusts for the timing impact of the July 4th holiday, our depletions trends improved from a decrease of 7% in the second quarter to a decrease of 3% in the third quarter. We continue to execute our operational plans and grew revenue, gross margin and operating cash flow in the quarter which enabled us to repurchase over $69 million in shares year-to-date,” said Chairman and Founder Jim Koch.
Investors were not happy with the results. Boston Beer stock dropped 12.4% on Friday. The company’s stock is down 4% in 2023.
See the full report here.