E-Malt.com News article: 2757

Canada: Brick Brewing Co. Limited, Canada's third-largest micro-brewer announced on June 7 good financial results for the first quarter ended April 30, 2004. Net Sales for the first quarter of 2004 increased to C$4.0 million compared to C$2.4 million for the same period last year. The 69% increase in the first quarter is a result of increased beer volumes due largely to the tactical pricing of its value brand portfolio. Net income was $149 thousand compared to a loss of $112 thousand in the first quarter last year, an improvement of $261 thousand in the first quarter.

"Our first quarter was the first time in the history of Brick where a significant operating profit was recorded during the first three months of our fiscal year" said Doug Berchtold, President and CEO. Jim Brickman Executive Chairman/Founder added "I am pleased to see the efforts of our initiatives implemented through the course of last year are beginning to materialize with very positive financial implications."

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $450 thousand in the first quarter compared to $180 thousand from the same quarter last year, an increase of 149%. Total selling, marketing and administration expenses increased $260 thousand to $1.0 million in the quarter. $150 thousand was due to selling and marketing expenses being incurred earlier than in the previous year.

During the quarter, the Company's beer volumes increased by 158% over the same period last year due largely to the tactical pricing of its value beer portfolio of brands. In April the Company received $2.2 million from a private placement of common shares. These funds were used to reduce the Company's working capital deficiency and provide funds for future growth opportunities.

Subsequent to the quarter end, the Company announced that it had entered into an agreement with Loblaws to provide PC beer to the Ontario market. This strategic relationship complements the Company's value beer strategy by providing another well recognized brand to its value beer portfolio.

Recently the Company announced that it had appointed Doug Berchtold to the position of President and CEO. Doug's experience in the beer industry will assist him to continue to grow and strengthen the financial performance of Brick Brewing Co. Limited. Jim Brickman, Executive Chairman/Founder continues to be actively involved in the long-term strategic direction of the Company and in many other areas crucial to our business ranging from industry, government and public relations to marketing and promotional activities. Mr Berchtold continued, "I am excited about the prospects for Brick in the coming fiscal year largely due to the various new initiatives already underway."


09 June, 2004