Boston Beer announces 10% increase in shipments but stocks dip on news of net income decrease
Boston Beer announced last week that quarterly shipments were up 10% and depletions up 7% for the period ended March 6th 2011. Revenue was up $8.1 million although net income was down $2.3 million.
The manic-depressive stock market plunged the shares of Boston Beer Company (SAM) over 10% the following day.
Year-to-date core shipments are up 8% and depletions up 5%.
Because of the newly enacted “freshest beer program” which allows Boston Beer to ship smaller loads more frequently to their distributors, inventories were down on wholesalers floors which affected overall numbers. Boston Beer has about 10 distributors currently on the program.