Truly hard soda
Rob Kim | .
Actions of Boston Beer closed on Fridays down 26% after disappointing demand for hard seltzer dragged down company quarterly earnings and revenues.
The Sam Adams Brewery reported earnings of $ 4.75 per person share on net sales of 603 million dollars. Analysts interviewed by Refinitiv are expected earnings of $ 6.69 per person share and revenues of 658 million dollars.
The company blamed it for the disappointing quarter on softer than expected demand for hard soda. Boston Beer owns Truly Hard Seltzer, one of the best brands in the category, but new competition and slowing down growth were among the factors that hurt the brand’s sales this quarter.
“We overestimated the growth of the hard seltz category in the second quarter and the demand for Really, which negatively impacted our volume and earnings for the quarter and our quotes for the reminder of the year, “said CEO Dave Burwick in a declaration.
He added that Boston Beer had increased its production of Really to be in able to satisfy the peak demand during the summer. Faced with less demand than expected, now its breweries have higher inventory, and the company has seen higher supply chain costs affecting its margins.
The company also cut it full-year forecast for its regulation earnings for share. Now he waits adjusted earnings of $ 18 to $ 22 per person share for 2021, down from his previous perspective of $ 22 to $ 26 per person share.
Including Friday’s Losses, Boston Beer Shares Down 29% year, giving it a market value of $ 8.6 billion.
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