Boston Beer Co. Inc. SAM named Frank H. Smalla as the company’s Senior Vice President, Finance, with effect from Jan 4, 2016. Alongside, he will assume the role of the company’s Chief Financial Officer (“CFO”), which is currently held by William F. Urich. Urich will step down from his position in 2016.
Prior to this, Smalla worked with Illinois-based Kraft Food Groups for about three years as Senior Vice President, Finance. Apart from this, Smalla served the company in several senior finance-related roles in 1995–2012, including that of Vice President of Finance.
Smalla’s experience and knowledge in the field of finance, along with his leadership skills, are likely to make him a great addition for Boston Beer, especially when the company is poised for growth and expansion.
We note that Boston Beer recently reported strong results for third-quarter 2015 backed by strength across its other brands. The brewer’s quarterly earnings per share of $2.85 grew 2.2% from $2.79 earned in the prior-year quarter and surpassed the Zacks Consensus Estimate of $2.66. The bottom line primarily gained from strong top-line growth, higher gross margin and lower taxes, offset by elevated advertising, promotional and selling expenses.
Net revenue advanced 9% year over year to $293.1 million and beat the Zacks Consensus Estimate of $233 million. The top-line improvement was driven by a 4% upside in core shipments and higher revenue per barrel.
Though the company’s outlook for 2015 was soft, management remains optimistic on growth of craft beer. Further, the company believes that its quality brands and beers, innovation, sales execution, strong financial position and ability to invest in driving growth at its brands will enable it to benefit from the elevated demand for craft beer.
Zacks Rank
Currently, Boston Beer has a Zacks Rank #3 (Hold). Some better-ranked stocks in the beverages-alcohol industry include Constellation Brands Inc. STZ, carrying a Zacks Rank #2 (Buy). Other stocks worth considering in the related beverage-soft drinks industry include Primo Water Corporation PRMW, with a Zacks Rank #1 (Strong Buy), and Dr Pepper Snapple Group Inc. DPS, with a Zacks Rank #2.
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