Boston Beer Co. said it projects earnings per share for fiscal 2021 will be somewhere between a loss of $1 and a profit of $1. That’s down dramatically from the company’s previous project of $2 to $6. “The estimated lower shipment growth is primarily a result of more aggressive wholesaler inventory reduction than expected, primarily affecting Truly,” the company said. “Additionally, due to higher-than-expected supply chain costs, which include costs for additional damaged and expired inventory resulting from the lower shipment volumes, we estimate gross margins to be lower than expected.”
It also said it estimates:
- Depletions increase of between 21% and 22%.
- Shipments increase of between 15% and 16%.
- National price increases of between 2% and 3%.
- Gross margin of between 38% and 40%.
- Increased investments in advertising, promotional and selling expenses of between $85million and $95 million. This does not include any changes in freight costs for the shipment of products to the Company’s distributors.
- Non-GAAP effective tax rate of approximately 43%, excluding the impact of ASU 2016-09.
- Estimated capital spending of between $145 million and $150 million.
The company didn’t change its guidance for 22022.