Boston Beer Co. reports a net loss of $8.95 million in the first quarter, significantly wide than the $1.96 million loss a year earlier. Sales fell to $410,000 from $430,000.
The loss reflects a 6% decline in depletions from the prior year. Truly Hard Seltzer, Angry Orchard, Samuel Adams, and Dogfish Head brands all saw declines, while Twisted Tea and Hard Mountain Dew brands showed gains, but not enough to offset the declines.
Shipments also fell, to about 1.6 million barrels, a 7.6% decrease. The company said it believes wholesalers have about five weeks sales on hand. That's an appropriate level, it added.
"As we continue to navigate through a dynamic operating environment, we remain committed to investing across our attractive Beyond Beer portfolio. We also expect our operational plans to drive improvement in our financial performance later in the year," said Chairman and Founder Jim Koch. "Our highly cash generative business and strong balance sheet will not only fuel our 2023 brand investments, but have also enabled us to repurchase $28 million in shares year-to-date."
"As we expected, our first quarter performance reflected strong growth in Twisted Tea, offset by continuing challenges in the hard seltzer category, and we are reiterating our 2023 depletion and shipment expectations," said President and CEO Dave Burwick. "We also expect that our investments to fortify Truly, which are launching in the second quarter, will help us win in the marketplace over the long term. We are focused on our plans to enhance our productivity while continuing to make long-term investments to sustain the strength of our brands."