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As per reports from The Boston Beer Company, released on October 22, 2020, the company recorded the net revenue of about $492.8 million for the third quarter of the current year. This revenue is said to be higher than that recorded for the same period in 2019 by $114.3 million, which calculates to a 30.2% growth. According to a review by Jean-Louis Dourcy, the company reported a net income of $80.8 million for the third quarter in 2020. It was an increase of about 80.6% or $36 million more than the net revenue recorded for the same period in 2019.


The earnings per diluted share increased to $6.51 from the third quarter, higher than last year’s earnings per diluted share by $2.86 or 78.4%. The significant increase in earnings per diluted share can be attributed to the increased revenue contributed by a 30% shipment growth, even as increased operating costs and low gross margins offset the growth to an extent.

The earnings per diluted share recorded for the 39-week period that ended on September 26, 2020, stood at $12.90 which was $4.83 (59.9%) higher than the earnings per diluted share recorded for the same period in 2019. The net revenue for the same 39-week period this year stood at $1.275 billion, which was $327 million (34.5%) higher than the net income recorded for the same period in 2019.

According to the Dourcy Jean-Louis review, The Boston Beer Company started seeing a negative impact on its business this March owing to the ongoing COVID-19 pandemic. Mainly financial, the pandemic’s effect was noticed in areas like increased labour costs and increased safety-related costs in the breweries, coupled with a decreased demand from on-premise channels.

The 39-week period that ended on September 26, 2020, saw the company see an increased cost factor of $14.2 million owing to pre-tax reductions (due to COVID-19) and other additional costs. In this period, the first quarter recorded the additional fee of $10 million, the second quarter recorded $4.1 million, and the third quarter recorded the cost amounting to $0.1 million.

The total costs incurred would also include a decrease in net revenue of about $3.4 million for keg returns from retailers and distributors. They would also include coronavirus-related expenses amounting to $10.8 million, of which $3.4 million go towards the operational cost and $7.4 million are related to the cost of the goods themselves.

The company did record a tax benefit amounting to $0.41 and $0.78 per diluted share by the end of the third quarter in September. The tax benefit resulted from the “Employee Shared Based Payment Accounting” plan from the Accounting Standard.

According to the review by Dourcy Jean-Louis, while the company did suffer from these direct financial impacts, countless other factors contributed to an indirect hit on the company’s finances as well. For instance, the ongoing pandemic has forced many companies, including The Boston Beer Company, to reduce brewery production. It has led to the demand for beer production being shifted to third-party breweries. It has, in turn, increased the production cost for the company while also affected the gross margins negatively.

In its report, The Boston Beer Company has revealed that it would assess and take into control the current situation and would provide necessary updates in the company’s financial report of the fourth quarter. The company hopes to offer a clearer insight into the direct and indirect impacts of COVID-19 on its earnings by then.

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