USA, OR: Craft Brewers Alliance reports higher profits on its Redhook and Kona labels

Craft Brewers Alliance Inc. reported on November, 14 higher third-quarter earnings on more shipments of its Redhook and Kona labels, higher prices and a near tripling of contract brewed beers.

The parent of Widmer Bros. Brewing Co., Kona Brewing Co. and Redhook Ale Brewery reported net earnings of $1.2 mln, or 7% a diluted share, on sales of $43.6 mln during the quarter ended Sept. 30. That compares to net income of $376,000, or 2% a share, on sales of $39.1 mln during the same period a year ago.

Craft shipped 165,300 barrels of its core brands, up from 159,100. It shipped 16,200 of contract brews, up from 6,300. Craft brews beer at its Redhook-branded New Hampshire brewery for Chicago-based Fulton Street Brewery, the maker of Goose Island Beer, according to its annual report. It also brews for an undisclosed third party at its Portland brewery.

The company projected earnings of 49 to 51% a share for 2011. But it expects earnings of 20 to 25% a share in 2012, partly because of higher grain prices.

Cash and equivalents were $618,000, up from $13,000 a year ago. Long-term debt was $29.3 mln, up from $26.6 mln.

Craft announced earnings after trading ended on the Nasdaq Stock Market. Shares closed at $6.80, up 33%.

16 November, 2011