Boston Beer(US:SAM)2025-10-23 20:30Financial Performance - Net revenue for Q3 2025 was $537.5 million, a decrease of 11.2% year-over-year [5]. - Year-to-date revenue of $1.579 billion decreased by 1.9% compared to the same period in 2024 [14]. - Revenue for the thirteen weeks ended September 27, 2025, was $571,476,000, a decrease of 10.9% compared to $642,131,000 for the same period in 2024 [30]. - Net income for Q3 2025 was $46.2 million, an increase of $12.6 million, but a decline of 26.3% when excluding the prior year's non-cash brand impairment charge [5]. - Net income for the thirty-nine weeks ended September 27, 2025, was $131,000,000, representing a 33.1% increase from $98,450,000 in the prior year [30]. - Operating income increased to $62,049,000 for the thirteen weeks ended September 27, 2025, compared to $45,833,000 for the same period in 2024, marking a 35.3% increase [30]. Expenses and Costs - Advertising, promotional, and selling expenses increased by $49.5 million or 12.0% year-to-date, primarily due to increased brand media investments [18]. - Advertising, promotional, and selling expenses rose to $164,739,000 for the thirteen weeks ended September 27, 2025, up from $147,986,000 in the prior year, indicating an 11.3% increase [30]. Margins and Profitability - Gross margin improved to 50.8%, up 450 basis points from 46.3% in the prior year [9]. - Gross profit for the thirteen weeks ended September 27, 2025, was $273,117,000, slightly down from $280,241,000 in the same period last year [30]. Cash and Assets - Cash and cash equivalents increased to $250,454,000 as of September 27, 2025, compared to $211,819,000 at the end of December 2024 [32]. - Total current assets reached $461,786,000 as of September 27, 2025, an increase from $417,291,000 at the end of December 2024 [32]. Liabilities and Shareholder Actions - Total liabilities were $335,617,000 as of September 27, 2025, slightly up from $333,831,000 at the end of December 2024 [32]. - The company repurchased $161 million in shares year-to-date, with approximately $266 million remaining on the share buyback expenditure limit [22]. - The company repurchased $152,423,000 of Class A common stock during the thirty-nine weeks ended September 27, 2025 [34]. Future Outlook - The company expects full-year 2025 depletions and shipments to decline in the mid-single digits, with gross margin guidance raised to 47% to 48% [25]. - The company plans to provide full-year 2026 financial guidance during its fourth quarter earnings call in February 2026 [26]. Taxation - The effective tax rate for Q3 2025 was 28.1%, down from 31.7% in the prior year [13]. Shipments and Depletions - Depletions decreased by 3% and shipments decreased by 13.7% in Q3 2025, with shipment volume at approximately 1.9 million barrels [6].