Canada, ON: Brick Brewing’s net revenues for Q3 of fiscal 2016 grow to C$9.8 mln

Brick Brewing Co. Limited, Ontario's largest Canadian-owned brewery, released on December 10 results for the third quarter ended October 25, 2015.

Net revenues for the third quarter of fiscal 2016 grew to C$9.8 million, up from C$9.3 million in the third quarter of fiscal 2015. Excluding the impact of C$147 thousand in one-time costs related to the Kitchener expansion, gross margins for the quarter were 27.2% versus 26.6% in Q3 of the prior year. Continued improvements to product mix coupled with success in cost reduction initiatives mitigated the impact of a soft pricing environment. EBITDA for the third quarter of fiscal 2016 improved to C$1.5 million, and C$1.6 million excluding one time costs, compared to C$1.4 million in the third quarter of fiscal 2015.

"Competitive pricing pressure in the quarter impacted our Laker brand, as international brewers had National brands at deep discount pricing for much of the quarter. Our ability to generate EBITDA growth in this environment is a testament to the strength of our Waterloo craft premium brand, to our diversified business model, and to the investments we've made to ensure we can compete effectively with the large international brewers," noted George Croft, President and CEO. "Our craft premium Waterloo brand grew 37% and is up over 30% year to date. This is prior to introduction of beer into the grocery channel which is expected to arrive on shelves in the next few months. Seagram had a strong quarter as well, with volume up over 7%, led by double digit growth in both vodka based coolers and cider."

During the quarter Brick incurred C$147 thousand in one time costs associated with the now complete Kitchener expansion project, bringing year to date one-time costs to C$349 thousand. Chief Operating Officer Russell Tabata noted, "The efficiency and performance of the new brewhouse is right in line with our expectations. The improvements we're seeing in energy, materials, and distribution are essential to our ability to compete effectively over the long term."

Given the strong operating and financial performance, Brick also announced on December 10 the introduction of a quarterly dividend, $0.012/share, payable on January 15 to shareholders of record as of January 1, 2016. The dividend is an eligible dividend. Chief Financial Officer Sean Byrne explained, "Both management and the board felt the time was right to begin to return cash directly to our shareholders. The Company's financial position is strong and our investments in recent years are generating the expected returns. Dividend introduction is entirely in line with our commitment to deliver value to our shareholders."

Croft added, "With a quarter to go, the positive changes in The Beer Store soon to be realized, and the introduction of beer into grocery underway, we feel we are well positioned for a strong finish to the year."

11 December, 2015