Boston Beer recently released its 10-Q report, providing insights into the company's performance for the thirteen and twenty-six week periods ended June 29, 2024, compared to the same periods in 2023.
In the thirteen-week period, net revenue decreased by $24.2 million, or 4.0%, primarily due to lower shipment volume, partially offset by price increases and lower returns. Total shipment volume decreased by 6.4% to 2,162,000 barrels, reflecting decreases in some of the company's brands. The company believes distributor inventory as of June 29, 2024, averaged approximately three and a half weeks on hand, lower than target wholesaler inventory levels of four to five weeks for the peak summer season.
For the twenty-six-week period, net revenue decreased by $8.2 million, or 0.8%, due to lower shipment volume, partially offset by price increases and lower returns. Total shipment volume decreased by 3.4% to 3,754,000 barrels, reflecting decreases in certain brands.
Cost of goods sold was $144.61 per barrel for the thirteen weeks ended June 29, 2024, compared to $142.49 per barrel for the same period in 2023. In the twenty-six-week period, cost of goods sold was $147.13 per barrel, compared to $150.05 per barrel for the same period in 2023.
Gross profit was $123.24 per barrel for the thirteen weeks ended June 29, 2024, compared to $118.68 per barrel for the same period in 2023. In the twenty-six-week period, gross profit was $120.62 per barrel, compared to $110.54 per barrel for the same period in 2023.
Advertising, promotional, and selling expenses decreased by $5.1 million, or 3.4%, for the thirteen weeks ended June 29, 2024, and by $10.3 million, or 3.7%, for the twenty-six weeks ended June 29, 2024, primarily due to decreased freight to distributors and lower brand media spend.
General and administrative expenses increased by $3.1 million, or 7.0%, for the thirteen weeks ended June 29, 2024, and by $9.8 million, or 11.1%, for the twenty-six weeks ended June 29, 2024, primarily due to higher salaries and benefits costs.
The company's effective tax rate increased from 27.5% to 28.6% for the thirteen weeks ended June 29, 2024, and from 27.5% to 29.5% for the twenty-six weeks ended June 29, 2024, due to an increase in non-deductible stock compensation expense.
Cash decreased to $219.3 million as of June 29, 2024, from $298.5 million as of December 30, 2023, primarily reflecting repurchases of the company's Class A common stock, a note receivable issued, purchases of property, plant, and equipment, and payments of tax withholdings on stock-based payment awards and investment shares, partially offset by net cash provided by operating activities. Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $270.52. For the full picture, make sure to review Boston Beer's 10-Q report.
