Boston Beer Q1 Revenue Down 4.4%, 49.3% Gross Margin, $15.52 Litigation Charge
Boston Beer’s Q1 net revenue fell 4.4% to $433.9 million on a 6.9% shipment decline and 4% depletion drop, while gross margin rose 100 basis points to 49.3%. GAAP diluted loss per share was $13.88, including a $15.52 litigation expense, and Non-GAAP EPS stood at $1.64.
1. Q1 Volume and Revenue Trends
Depletions decreased 4% year-over-year and shipments fell 6.9% to approximately 1.6 million barrels, driven by lower Twisted Tea, Truly and Hard Mountain Dew volumes partially offset by growth in Sun Cruiser, Angry Orchard and Dogfish Head. Net revenue declined 4.4% to $433.9 million, reflecting volume headwinds offset by pricing and favorable mix.
2. Profitability and Litigation Impact
Gross margin improved by 100 basis points to 49.3% thanks to price increases, mix benefits, procurement savings and brewery efficiencies, partially offset by inflationary costs. The company recorded a GAAP diluted loss per share of $13.88, which includes a $175.5 million litigation judgment and related $15.52 per share expense, while Non-GAAP EPS was $1.64.
3. Balance Sheet and Share Repurchases
Cash on hand at quarter end was $164.1 million with no debt, supported by an unused $150 million credit line. Share repurchases totaled $31.2 million year-to-date, leaving approximately $197 million remaining under the Board-authorized $1.6 billion buyback limit.
4. Updated Guidance and Outlook
Management narrowed full-year volume guidance to reflect latest shipment trends and a challenging cost environment, while projecting that ongoing operating cash flows and existing liquidity will cover potential litigation payments. Focus remains on cost savings initiatives, advertising support and supply chain responsiveness.