The Boston Beer Company Earnings Call Transcripts
Fiscal Year 2026
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Growth is shifting to 'beyond beer' and RTDs, with Sun Cruiser and Twisted Tea Extreme gaining shelf space while Truly continues to decline. Innovation and data-driven marketing are prioritized, and financial guidance remains cautious but confident in margin targets despite external risks.
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First quarter 2026 saw depletions down 4% and shipments down 6.9% year-over-year, with margin gains and strong cash flow. Sun Cruiser and Twisted Tea drove growth, while litigation and commodity inflation remain key risks. Guidance narrowed for volume and EPS.
Fiscal Year 2025
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2025 saw disciplined execution amid industry headwinds, with gross margin expansion, strong cash flow, and significant share repurchases. 2026 guidance anticipates flat to declining volumes, higher advertising spend, and continued margin focus, with innovation and beyond beer driving growth.
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Q3 saw lower volumes but record gross margins, driven by operational efficiencies and product mix. Despite industry headwinds, strong cash flow enabled increased brand investment and share repurchases, with guidance raised for gross margin and EPS.
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Leadership is focused on value-added activities and internal succession. The company is navigating structural headwinds in alcohol consumption, emphasizing innovation in the "fourth category" and targeted brand strategies. Gross margin gains and strong cash flow support reinvestment and share buybacks.
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Q2 saw margin and EPS growth despite a 5% depletion decline, with Sun Cruiser and smaller brands offsetting softness in core brands. Raised gross margin guidance and maintained strong cash flow, but expect shipment declines in H2 amid industry volatility.
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Q1 2025 saw revenue up 6.5% and gross margin at a five-year high, driven by innovation and margin initiatives, despite depletions down 1%. Full-year EPS guidance is unchanged, with tariffs expected to impact costs, and strong cash flow supports continued share repurchases.
Fiscal Year 2024
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2024 saw strong EPS and margin growth, driven by innovation and disciplined cost management, despite flat volumes and a challenging market. 2025 guidance anticipates stable to slightly positive shipments, higher advertising spend, and continued margin expansion, with Sun Cruiser and Twisted Tea as key growth drivers.
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Q3 saw modest revenue growth and margin expansion despite volume declines, with strong cash flow and increased share repurchases. Twisted Tea and Sun Cruiser performed well, while Truly underperformed. 2024 guidance was narrowed, with a focus on margin improvement and innovation.
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U.S. beverage alcohol consumption is stable, with growth in a new 'fourth category' blending beer, wine, and spirits. Strategic focus is on patient innovation, on-premise brand building, and operational efficiency, with recent success in hard tea and ongoing margin improvements.
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Q2 saw a 4% drop in depletions and 6.4% decline in shipments, mainly from Truly Hard Seltzer weakness, but Twisted Tea and Sun Cruiser showed growth. Gross margin improved to 46%, and guidance was revised to reflect softer volumes, with continued focus on innovation and margin expansion.