Canada, Toronto: Sleeman Breweries Ltd., Canada's third largest brewer, posted a 16 percent increase in first-quarter profit on May 11 as strong demand helped boost revenues. The Guelph, Ontario-based brewer said it earned C$2.2 million ($1.59 million), or 14 Canadian cents a share, for the period ended March 27, up from C$1.9 million, or 12 Canadian cents per share in the same period a year earlier. Three analysts polled by Multex had expected, on average, earnings of 13 Canadian cents.

Increased sales of its low-carbohydrate beer, Sleeman Clear, as well as growth among core brands such as Honey Brown and Cream Ale helped boost revenues 15 percent to C$38.2 million from C$33.3 million last year.

In April, Sleeman agreed to buy Quebec's largest microbrewery Unibroue Inc., giving it a stronger foothold in Quebec and a new avenue into the U.S. market. Sleeman does not expect the acquisition to have any impact on 2004 earnings, but it says it will add between C$5 million and C$6 million to 2005 earnings before income taxes, depreciation and amortization.

The deal is expected to close in June. Excluding the Unibroue deal, Sleeman plans to increase sales volumes of its core brands by 3 % to 5 %.

12 May, 2004