Canada: Russell Breweries net sales increased 70% in Q1 2008 vs. Q1 2007

Russell Breweries Inc., a producer of premium craft beer in Western Canada, reported consolidated results for its fiscal quarter ended September 30, 2007, in a press release, December 3.

Net revenues for Q1 2008 increased 70.5% to CA$452,465 from CA$265,363 (restated) in the comparative 2007 fiscal quarter.

The Company had a net loss of CA$671,068, a loss of CA$0.03 per share, for Q1 2008 compared to a loss of CA$158,858 (restated) or CA$0.02 loss per share (restated) in the comparative 2007 fiscal quarter.

“We continue to grow sales at a great pace which includes our BC Lions / BC Place account. The Q1 loss included CA$280,800 (Q1 2007 CA$nil) of stock compensation expense and CA$86,926 (Q1 2007 CA$33,635) of amortization which are non cash items. Marketing costs increased by CA$182,761 over Q1 2007, reflecting increased branding expenditures and a substantial portion of the BC Lions / BC Place sponsorship expense, as well as increased corporate activities and costs associated with a more than doubling of brewing capacity over the 2007 quarter,” said Andrew Harris, President. “Looking ahead, Q2 2008 results will include results of Fort Garry Brewing Company from the acquisition date, October 22, 2007 onward.”

Russell Brewing Company and Fort Garry Brewing Company are wholly owned subsidiaries of Russell Breweries Inc. Russell Brewing Company produces premium beer in British Columbia. Products include: Russell Cream Ale, Russell Pale Ale, Russell Honey Blonde Ale, Russell Extra Special Lager plus two seasonal brews, Russell Lemon Ale and Russell Winter Porter. Fort Garry Brewing Company is Manitoba’s largest brewery operation and distributor of premium quality beers including Fort Garry Dark Ale, Fort Garry Pale Ale, Fort Garry Premium Light, Two Rivers Red and Stone Cold.

05 December, 2007