The Boston Beer Company (SAM) Q4 2024 Earnings Call February 26, 2025 08:20 AM ET Company Participants Michael Andrews - Associate General Counsel & Corporate SecretaryJames Koch - Founder & ChairmanMichael Spillane - President & CEODiego Reynoso - CFO & TreasurerKaumil Gajrawala - Managing DirectorRobert Ottenstein - Senior Managing Director & PartnerEric Serotta - Executive DirectorBonnie Herzog - Managing Director Filippo Falorni - Director - Equity ResearchBill Kirk - Managing DirectorGerald Pascarelli ...

Financial Data and Key Metrics Changes - The company achieved a non-GAAP EPS growth of 31% year-over-year, reaching $9.43, supported by a 200 basis points gross margin expansion to 44.4% [7][39] - Free cash flow for 2024 was $173 million, equating to $14.70 per share, allowing for $239 million in share repurchases [8][39] - Fourth quarter gross margin was 39.9%, an increase of 230 basis points year-over-year, marking the highest fourth quarter gross margin since 2020 [41] Business Line Data and Key Metrics Changes - Depletions in the fourth quarter were flat, with shipments decreasing by 0.5%, primarily due to declines in Truly Hard Seltzer, offset by growth in Twisted Tea, Sun Cruiser, and Hard Mountain Dew [40] - Twisted Tea maintained an 84% market share in the hard tea category, contributing over 50% of the dollar growth in that category in 2024 [20] - The Truly portfolio has been repositioned to focus on light flavors, with the higher ABV Truly Unruly performing above expectations [24] Market Data and Key Metrics Changes - The hard seltzer category faced headwinds, with category dollars down 4% in the fourth quarter [23] - The company noted that the beer category remains relevant, with significant growth opportunities in the "beyond beer" segment as consumer preferences evolve [8][9] Company Strategy and Development Direction - The company plans to increase advertising investments across its portfolio to improve market share and support the national launch of Sun Cruiser [10][12] - Strategic priorities for 2025 include nurturing core brands, developing margin-accretive innovations, and modernizing the supply chain while driving efficiency [17] - The company is focusing on a disciplined approach to innovation, particularly with the launch of vodka-based hard tea Sun Cruiser and the expansion of Samuel Adams [18][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation on consumer behavior and increased competition in the "beyond beer" category [8][9] - The company expressed confidence in its strategy and team, emphasizing the importance of operational execution for long-term sustainable growth [12][36] - The 2025 financial guidance anticipates a range of outcomes due to the dynamic consumer demand environment [12][53] Other Important Information - The company reported a non-GAAP loss per diluted share of $1.68, primarily due to increased advertising and promotional expenses [45] - Capital expenditures for 2025 are expected to be between $90 million and $110 million, focusing on brewery capabilities and efficiencies [57] Q&A Session Summary Question: Can you elaborate on the new compensation plan? - The new compensation plan aligns incentives with business objectives, encouraging equal effort across all brands rather than focusing solely on volume [60][62] Question: How is beer demand starting the year? - The company is starting from a flat depletion point, with some brands like Twisted Tea facing challenges, but overall, they are satisfied with the beginning of the year [74][75] Question: What is the growth outlook for Twisted Tea? - The company is planning for single-digit growth for Twisted Tea, focusing on increasing advertising and introducing new products to attract new drinkers [108][110] Question: How is the company addressing health and wellness concerns? - The company is actively advocating for the alcohol industry and monitoring health trends, acknowledging potential shifts in consumer behavior [106][128] Question: What is the impact of cannabis beverages on the alcohol market? - While cannabis beverages are a potential threat, the company has not yet seen a significant impact on its portfolio and is prepared to enter the market if opportunities arise [87][92]

Boston Beer (SAM) came out with a quarterly loss of $1.68 per share versus the Zacks Consensus Estimate of a loss of $1.18. This compares to loss of $1.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -42.37%. A quarter ago, it was expected that this brewer would post earnings of $4.96 per share when it actually produced earnings of $5.35, delivering a surprise of 7.86%.Over the last four quarters, the company has surpassed ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 1-14092 THE BOSTON BEER COMPANY, INC. (Exact name of registrant as specified in its charter) Massachusetts 04-32 ...

Investor Relations Contact: Media Contact: Jennifer Larson Dave DeCecco (617) 368-5152 (914) 261-6572 jennifer.larson@bostonbeer.com dave.dececco@bostonbeer.com Exhibit 99 BOSTON BEER REPORTS FOURTH QUARTER FINANCIAL RESULTS BOSTON (February 25, 2025) -- The Boston Beer Company, Inc. (NYSE: SAM), today reported financial results for the fourth quarter ended December 28, 2024. Key results were: Fourth Quarter 2024 Summary: Full Year 2024 Summary: Capital Structure • Depletions were flat and shipments decreas ...

Core Insights - The Boston Beer Company reported a solid finish to 2024 with flat depletions, gross margin expansion, and strong cash generation, indicating improved operational and financial performance [3][4][6] - The company plans to increase advertising investment in 2025 to strengthen its brands and drive long-term sustainable growth [3][5] Fourth Quarter 2024 Summary - Depletions for the fourth quarter were flat compared to the prior year, with shipment volume at approximately 1.5 million barrels, a 0.5% decrease [4][6] - Net revenue for the quarter increased by 2.2% to $402.3 million, driven by price increases and lower returns, despite lower volumes and increased excise taxes [5][6] - Gross margin for the fourth quarter was 39.9%, up 230 basis points year over year, benefiting from increased revenue and procurement savings [6][7] Full Year 2024 Summary - Full-year net revenue was $2.01 billion, a 0.2% increase compared to 2023, with depletions down 2% and shipment volume at approximately 7.5 million barrels, a 2.4% decrease [14][15] - Gross margin for the full year was 44.4%, an increase of 200 basis points year over year, primarily due to price increases and procurement savings [15][16] - The company generated $249 million in operating cash flow for the full year and ended with $212 million in cash and no debt [6][14] Advertising and Expenses - Advertising, promotional, and selling expenses for Q4 2024 increased by $10.9 million or 8.5% from Q4 2023, driven by higher brand media investments [9][10] - General and administrative expenses rose by $4.0 million or 9.1% from the prior year, mainly due to increased indirect taxes and professional fees [10][18] Impairment and Settlement Costs - The company incurred impairment costs for brewery equipment and other assets of $3.4 million in Q4 2024, with a full-year impairment of $7.2 million [11][20] - Contract settlement costs included a $26 million cash payment due to a supplier contract amendment, impacting the financial results [10][19] Share Repurchase and Capital Structure - The company repurchased $239 million in shares in 2024 and an additional $29 million in 2025 through February 21, 2025 [6][25] - The company maintains a strong balance sheet, with sufficient cash and projected future operating cash flows to fund future requirements [24][25] 2025 Projections - For 2025, the company projects depletions and shipments to change by low single digits, with price increases of 1% to 2% and a gross margin target of 45% to 47% [28][29] - The effective tax rate is expected to be between 29% and 30%, with GAAP EPS projected between $8.00 and $10.50 [28][29]

Core Viewpoint - Boston Beer Company is expected to report fourth-quarter 2024 results on February 25, with anticipated bottom-line growth compared to the previous year [1] Financial Estimates - The Zacks Consensus Estimate for loss per share is $1.18, an improvement from a loss of $1.49 in the year-ago quarter, although the consensus has widened in the past week [2] - Quarterly revenue is estimated at $389.6 million, indicating a 1.04% decline from the previous year's figure [2] Recent Performance - In the last reported quarter, Boston Beer achieved an earnings beat of 7.9%, with an average trailing four-quarter earnings surprise of 154.6% [3] Factors Influencing Q4 Results - The company is facing challenges due to a slowdown in the hard seltzer category and weakening demand for its Truly brand, with consumer preferences shifting towards other beverage alternatives [4][5] - Increased competition and lack of novelty in the hard seltzer market, along with macroeconomic challenges like inflation, are impacting sales [5] Strategic Positioning - Boston Beer is expected to improve performance through strong price realization and procurement savings, which are offsetting inflationary pressures [6] - The company is focusing on strategic pricing, product innovation, and brand development, particularly in the Beyond Beer category, which is growing faster than the traditional beer market [7] Earnings Prediction Model - The current model does not predict an earnings beat for Boston Beer, with an Earnings ESP of -24.19% and a Zacks Rank of 3 [8] Valuation Analysis - Boston Beer stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 19.28x, compared to the industry average of 14.14x, indicating potential value for investors [9] - The stock has declined 24.4% over the past three months, while the industry has seen a decline of 12.1% [9]

Core Insights - Starcore International Mines Ltd. reported a significant increase in gold production at its San Martin Mine, producing 2,268 Equivalent ounces of gold in Q3 2025, a 55% increase from 1,466 ounces in the previous quarter [2][3] - The mine operations returned to normal after a two-month suspension, and the company anticipates further improvements in production due to the mining of oxide ore and the recovery of gold and silver from carbonaceous ore [2][3] - The expected reserves from the carbonaceous ore amount to an additional 1 million tonnes with an average grade of 3.1 grams of gold and 20 grams of silver per tonne [2] Production Metrics - Ore Milled: 46,730 tonnes in Q3 2025, a decrease of 3% from 48,248 tonnes in Q2 2025, and a 14% decrease year-to-date [3] - Gold Equivalent Ounces: 2,268 ounces in Q3 2025, up 55% from 1,466 ounces in Q2 2025, and a slight decrease of 4% year-to-date [3] - Gold Grade: 1.74 grams/ton in Q3 2025, a 58% increase from 1.10 grams/ton in Q2 2025, and a 16% increase year-to-date [3] - Silver Grade: 11.08 grams/ton in Q3 2025, a 13% increase from 9.81 grams/ton in Q2 2025, but a 6% decrease year-to-date [3] - Gold Recovery: 82.44% in Q3 2025, a 3% increase from 80.25% in Q2 2025, and a 4% decrease year-to-date [3] - Silver Recovery: 49.10% in Q3 2025, nearly unchanged from 49.16% in Q2 2025, with a 10% increase year-to-date [3] Company Overview - Starcore International Mines focuses on precious metals production, primarily in Mexico, and has expanded its operations internationally, including a project in Côte d'Ivoire [4] - The company emphasizes Corporate Social Responsibility and aims to make value-driven decisions to enhance long-term shareholder value [4]

Core Insights - Twisted Tea Hard Iced Tea has expanded its partnership with Top Rank, becoming the Official Malt Beverage Partner for Top Rank's 2025 events, enhancing its presence in the boxing industry [1][2][3] Company Overview - Twisted Tea is recognized as the number one hard iced tea brand in the United States, founded in 2001, and is known for its smooth and refreshing taste made from real brewed tea [5] - The Boston Beer Company, which owns Twisted Tea, has been a significant player in the craft beverage industry since 1984, producing various products including hard cider, hard seltzer, and hard tea [6] Industry Collaboration - The partnership will feature Twisted Tea as the "Official Walkout Partner," providing fans with unique experiences and branded content during boxing events [2][3] - The collaboration includes four shoulder programming shows that will highlight the "Greatest Hits" of Top Rank fighters, aiming to enhance fan engagement [2] Event Highlights - The expanded partnership will debut with a lightweight championship bout on February 14, 2025, featuring WBO world champion Denys Berinchyk defending his title against Keyshawn Davis at Madison Square Garden [3]

Core Insights - Twisted Tea Hard Iced Tea has expanded its partnership with Top Rank, becoming the Official Malt Beverage Partner for Top Rank's 2025 events, enhancing fan experiences through in-arena presence and branded content [1][2][3] Company Overview - Twisted Tea is recognized as the nation's leading hard iced tea brand, founded in 2001, and is known for its smooth and refreshing taste made from real brewed tea [5] - The Boston Beer Company, which owns Twisted Tea, has been a significant player in the craft beverage industry since 1984, producing various products including hard cider and hard seltzer [6] Industry Context - Top Rank, established in 1973, is a leading boxing promotion company known for developing and promoting top international boxing stars [7] - The partnership aims to leverage Top Rank's roster of world-class fighters to create unique fan experiences, including exclusive content and branded integrations [2][3]