The Boston Beer Company (SAM) Q4 2024 earnings summary

Executive summary

• Achieved 31% non-GAAP EPS growth in 2024, supported by 200 basis points of gross margin expansion and increased advertising investments.

• Free cash flow reached $173 million, enabling $239 million in share repurchases in 2024.

• Q4 2024 net revenue rose 2.2% to $402.3M; full-year revenue up 0.2% to $2.01B.

• Depletion trends improved, with flat depletions in Q4 and year-to-date 2025, despite a dynamic and competitive environment.

• Focused on supporting category-leading brands, launching innovations like Sun Cruiser, and expanding gross margins.

Financial highlights

• 2024 revenue up slightly year-over-year, with shipments down 2% and price realization up 2 points.

• Gross margin expanded 200 basis points to 44.4% (46.1% excluding contractual items); Q4 gross margin at 39.9% (up 230 bps YoY), highest Q4 margin since 2020.

• Non-GAAP EPS of $9.43, up 31% year-over-year; Q4 non-GAAP loss per diluted share of $1.68, excluding $26 million contract settlement costs.

• Full-year GAAP EPS was $5.06, including $4.37/share in non-cash brand impairment and contract settlement.

• Ended 2024 with $212M in cash, no debt, and $249M in operating cash flow.

Outlook and guidance

• 2025 depletions and shipments expected to range from low single-digit decrease to low single-digit increase year-over-year.

• Price increases of 1%-2% planned.

• 2025 gross margin guidance: 45%-47%; excluding contractual items, midpoint would be 47.2%.

• Advertising, promotional, and selling expenses to increase $30-$50 million, mostly in H1 2025.

• 2025 EPS guidance: $8-$10.50 per diluted share; effective tax rate 29%-30%; capital expenditures expected at $90-$110 million.