By Christiana Sciaudone
Investing.com – Move over beer, hard seltzer is taking over.
The Boston Beer (NYSE:) Company reported second quarter net sales of $452 million, up 42% from a year earlier, thanks to increased sales of hard seltzer products. Profit of $60 million rose 116% from the same period in 2019, and earnings per share of $4.88 compared to last year’s $2.52.
Shares of SAM rose 22%, to an all-time high amid a sea of red.
“The growth of the Truly brand, led by Truly Hard Lemonade, has accelerated and continues to grow beyond our expectations,” said Chief Executive Officer Dave Burwick. “Since early January, Truly has grown its velocity and its market share sequentially while other national, regional and local hard seltzer brands have entered the category.”
The company will “continue to invest heavily in the Truly brand and work to improve our position in the hard seltzer category as competition continues to increase,” Burwick said. Sales of Twisted Tea, a hard ice tea drink, are also growing.
The company’s full-year gross margin target is between 46% and 48% and full-year non-GAAP earnings per diluted share is estimated at between $11.70 and $12.70.
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