Q4 2024 Boston Beer Company Inc Earnings Call Transcript
Key Points
- Boston Beer Co Inc (SAM) achieved a 31% growth in non-GAAP EPS, supported by a 200 basis point expansion in gross margin.
- The company generated $173 million in free cash flow, allowing for $239 million in share repurchases in 2024.
- Twisted Tea continues to grow its market share, holding an 84% share in the hard tea category and contributing significantly to the category's dollar growth.
- The national expansion of Sun Cruiser is underway, with positive performance in initial markets and plans to triple distribution points by mid-2025.
- Boston Beer Co Inc (SAM) is investing in advertising and marketing to support brand growth, with a focus on innovation and expanding market share.
- The hard seltzer category is facing headwinds, with category dollars down 4% in the fourth quarter.
- Depletions in the fourth quarter were flat, and shipments decreased by 0.5% from the prior year.
- The company anticipates potential volatility in the volume environment due to dynamic consumer demand.
- Increased advertising investments are expected to dampen 2025 operating income growth.
- The company faces challenges from increased competition in the 'beyond beer' category and potential impacts from health and wellness trends.
Greetings and welcome to the Boston Beer Company fourth-quarter 2024 earnings call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce to you Mike Andrews, associate general counsel and corporate secretary.
Thank you, sir. You may begin.
Thank you. Good afternoon and welcome. This is Mike Andrews, associate general counsel and corporate secretary of the Boston Beer Company.
I'm pleased to kick off our 2024 4th quarter earnings call.
Joining the call for Boston beer are Jim Cook, founder and Chairman, Michael Spillane, our CEO, and Diego Reynoso, our CFO.
Before we discuss our business, I'll start with our claim.
As we state in our earnings release, some of the information we discussed and that may come up in this call reflects that the companies or management expectations or predictions of the future. Such predictions are forward-looking statements. It's
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