E-Malt.com News article: Canada, ON: Brick Brewing reports decline in Q2 net revenues

Brick Brewing Co. Limited, the largest Canadian-owned and Canadian-based publicly held brewery in Ontario, on September 12 released its financial results for the second quarter of its 2014 fiscal year.

The company's key brands, its growth pillars for the future, performed well in the quarter with Laker volume up 11%, Waterloo up 22% and Seagram coolers and ciders up 5% from the same period last year. The volume gains were achieved amidst a beer category that experienced declines of approximately 5%-6% over the same period, driven by cool summer weather.

Net Revenues for the second quarter of fiscal 2014 were C$11.4 million compared to C$11.5 million in the second quarter of fiscal 2013. The impact of higher volumes was eroded by sales mix and pricing pressure from large brewers' nationally supported brands. Gross profit for the quarter declined to 21.4% in the second quarter of fiscal 2014, from 33.2% in Q2 of the prior year, the result of a shift in package size mix as well as higher operating cost to support free can-in-case promotional activity. EBITDA for the second quarter of fiscal 2014 decreased to C$0.4 million compared to EBITDA of C$2.4 million in the second quarter of fiscal 2013. Increased advertising behind Laker, Waterloo and Seagram, coupled with a free can-in-case promotion to support the launch of Laker 12-pack bottles were drivers to the EBITDA result.

"We have made clear and thoughtful choices for this company's future and the game plan is playing out" stated George Croft, President and CEO. "Waterloo and Seagram are higher margin offerings that compete in key growth segments - craft beer, ciders and coolers. Investing in these brands was central to the volume growth we've seen year-to-date. As well, a strong and stable Laker business is the foundation of our business. Our Laker 12-pack free can-in-case was successful in driving awareness and trial. We maintain our focus on costs, and these efforts will pay dividends. We continue to work to deliver improved pricing and margins. Despite challenging financial results for the second quarter and year to date, as a shareholder I'm confident in our ability to deliver improved performance in the second half of fiscal 2014."


17 September, 2013