USA: Boston Beer amends production deal, cuts guidance

Boston Beer Company Inc cut its full-year GAAP earnings per share guidance to $3.80-$5.80, down from $5.50-$7.50, Yahoo Finance reported on December 20.

The company said it has amended its production agreement with Rauch North America to better align with its future capacity needs. The revised deal enhances production flexibility and grants Boston Beer improved termination rights.

As part of the agreement, Boston Beer will make a $26 million cash payment to Rauch by December 23, resulting in a pre-tax contract settlement expense of $26 million, or $1.70 per diluted share after tax, in the fourth quarter of 2024.

Non-GAAP EPS guidance remains unchanged at $8.00-$10.00.