BOSTON (AP) — The Boston Beer Company Inc.'s profit slipped in the first quarter as rising costs dampened sales gains for the brewer.
The company, which makes Samuel Adams beer, Twisted Tea and other beverages, said Wednesday that it faced higher costs for some of its goods during the quarter, and it increased spending on advertising and promotions. Those expenses were partially offset by a favorable tax settlement.
Boston Beer reported net income of $6.9 million, or 51 cents per share, for the quarter. That is down from $7.5 million, or 56 cents per share, in the first quarter last year.
Revenue increased 20 percent to $135.9 million, helped by a 1 percent price increase. The company said stronger sales of cider and tea brands offset slightly softer sales of Samuel Adams due to a disappointing seasonal beer.
Analysts polled by FactSet expecting earnings of 64 cents per share on revenue of $131.3 million.
Boston Beer said that it still faces intense competition from domestic specialty and craft beer makers, which has hampered growth of Samuel Adams.
The company is making an effort to improve sales, including introducing its Samuel Adams Boston Lager in cans, which it will begin selling in May.
Boston Beer kept its full-year forecast for earnings between $4.70 and $5.10 per share for the year. Analysts forecast earnings of $4.96 per share for the year.
Shares of Boston Beer fell nearly 2 percent to close at $166.03 amid a broader market sell-off.