E-Malt.com News article: Canada, BC & MAN: Russell Breweries pleased with its nine-month performance

Russell Breweries Inc., a producer of premium craft beer, released on May, 30 its financial results for the third quarter of Fiscal 2012, ended March 31, 2012.

"We are pleased with the performance of the Company over the first nine months of 2012 fiscal year," says Brian Harris, CEO. "We have achieved EBITDA positive of C$3,266 for 2012F YTD compared to a negative EBITDA of C$350,865 for the nine months ended March 31, 2011, which is a result of continued cost savings and reduction of expenses while increasing sales and margin in an extremely competitive market."

Russell Breweries Inc. generated C$6,064,116 gross sales for 2012F YTD up C$354,818 or 6% compared to C$5,709,298 for the nine months ended March 31, 2011 ("2011F YTD"). Net Sales for 2012F YTD were C$4,665,014 up C$160,167 or 4% compared to C$4,504,847 for 2011F YTD.

The gross margin for 2012F YTD increased C$360,110 or 17% to C$2,459,819 compared to C$2,099,709 for 2011F YTD. The gross margin percentage of 2012F YTD was up 6% to 53% compared to 47% for 2011F YTD. The increase in gross margin is primarily a result of the continued sales growth in higher margin premium and super premium brands.

Selling, general and administration expenses for 2012F YTD increased C$5,979 to C$2,456,553 from C$2,450,574 of 2011F YTD. Other expenses for 2012F YTD were up C$57,800 to C$268,827 compared to C$211,027 for 2011F YTD.

The Company had a net loss of C$610,724 for 2012F YTD compared to the net loss of C$906,839 for 2011F YTD, a decrease of C$296,115 or 33%. The decrease in net loss is primarily a result of C$360,110 increase in gross margin which is offset by C$5,979 increase in selling, general and administrative expenses and C$57,800 increase in other expenses.

Russell Breweries Inc. produces premium beers in Western Canada in breweries located in BC and Manitoba. All products are held to the highest quality standards, brewed without any preservatives, ensuring that the passion that goes into crafting the beers comes through in the taste. Russell Breweries Inc. is a public company trading on the TSX Venture Exchange under the symbol "RB".


01 June, 2012