Boston Beer Company shares fell over 15% on Wednesday after the brewer disappointed with fourth-quarter results.
Losses jumped to US$18.1 million over the final three months of the year, from US$11.4 million a year earlier, the group reported on Tuesday, increasing from US$0.93 to $1.49 on a per share basis.
Analysts had been expecting the figure to narrow meanwhile, forecasting losses of US$4.4 million for the quarter, or US$0.29 a share.
This was as shipments retracted by 12.2% to roughly 1.5 million barrels, which pushed revenue 12% lower to $417.4 million.
Such drop reflected a wider fall in demand, the company said, with depletions, which tracks sales by distributors to retailers, declining by 9%.
The reduction was “primarily due to declines in Truly Hard Seltzer, partially offset by increases in Twisted Tea and growth in Samuel Adams Non-Alcoholic styles and Dogfish Head Canned cocktails,” the company said.
Outgoing chief executive Dave Burwick said the company remained focused on growing market share through its Beyond Beer portfolio, alongside driving margin gains via supply chain improvements.
Margins of up to 45% were being targeted for the year ahead as a result, against 42.4% in 2023, with the company also anticipating price increases and improved demand.
Burwick was also confirmed to be retiring come April 1, the company said separately, in favour of insider Michael Spillane.
Shares fell 15.9% to US$311.35.