Canada: Ontario’s Brick Brewing Co. reports increased net revenue in Q3 2016

Brick Brewing Co. Limited ("Brick" or the "Company"), Ontario's largest Canadian-owned brewery, released on December 9 its results for the third quarter ended October 30, 2016.

Net Revenues for the third quarter of fiscal 2017 grew to C$11.1 million, up from C$9.8 million in the third quarter of fiscal 2016. Gross margins for the quarter increased to 34.3% versus 25.7% in Q3 of the prior year. Margin expansion was supported by volume growth, improved product mix, strong pricing, as well as overall cost reductions in operations. EBITDA for the third quarter of fiscal 2017 improved to C$2.0 million, reflecting a continuation of the strong results reported in the first half of the year.

"This was, by any measure, another tremendous quarter for Brick Brewing," noted George Croft, President and CEO. "We're reporting double digit growth in branded volume, co-pack revenue and net sales. We've been able to expand margins, increase the investment in our brands, and still deliver over 30% growth in EBITDA. Our Laker brand posted 13% volume growth while LandShark continued to resonate with consumers. Our Waterloo brand declined modestly in the quarter, due to channel inventory reductions. Counter sales for Waterloo remained strong, and are consistent with our year to date growth, up 14% vs prior year. We have been successful in growing market share, and the strong response we've enjoyed from our consumers has allowed us to outperform the category."

As a result of the strength in operating and financial performance, Brick is also announcing an increase in the quarterly dividend, to C$0.016/share, up from C$0.012/share. The dividend is payable January 24 to shareholders of record as of January 10, 2017. The dividend is an eligible dividend. Chief Financial Officer Sean Byrne commented, "The increase in the dividend is simply a continuation of our commitment to deliver value to shareholders. We believe it also speaks volumes about our ability to both invest in growing our business while at the same time increasing returns to shareholders."

Croft added, "Although we are enormously pleased with our results to date, we are taking nothing for granted. We will continue to focus on executional excellence, and will be working hard to ensure a strong finish for the year."

09 December, 2016