E-Malt.com News article: Canada, ON: Waterloo Brewing reports Q2 and H1 2020 results

Waterloo Brewing Ltd., Ontario's first craft brewery, announced financial results for the second quarter ending July 26, 2020. The company reported EBITDA growth of +61.5% to C$5.8 million on net revenue of C$24.6 million.

Second quarter highlights:

Net revenue increased 44.4% to C$24.6 million, up from C$17.0 million in the prior year.

Gross margin declined slightly to 30.9%, compared to 34.1% the prior year.

EBITDA increased 61.5% to C$5.8 million, compared to C$3.6 million prior year.

Core owned brands (+28% versus prior year) are becoming formidable competitors in the highly profitable beer and beverage alcohol categories.

The Board of Directors approved the quarterly dividend, C$0.02625/share, payable October 30, 2020, to shareholders of record as of October 16, 2020. The dividend is classified as an eligible dividend.

First half highlights:

Net revenue increased 34.3% to C$39.4 million up from C$29.4 million in the prior year.

Gross margin was flat at 28.6% compared to the prior year.

EBITDA increased 51.1% to C$7.9 million, compared to C$5.2 million in the prior year.

"The strength of our business strategy has been put to the test in these past few months, and it has been reassuringly successful," said George Croft, President, and CEO, Waterloo Brewing. "Our choice to embrace our Ontario roots reflects growing consumer interest in buying local. Our choice to provide reliably good value reflects the challenges of hardworking people's budgets. Our choice for a diverse portfolio of value, premium and craft beers, complemented by our Seagram family of ciders, coolers and future beverage alcohol innovation, is growing at +28% versus prior year. This is an exciting chapter of intensive growth and expansion for our company."

"This past quarter is a watershed moment for our business," continued Croft. "firmly establishing the foundation of healthy brands, superior quality standards, relentlessly efficient operations and the solid financials needed to become a formidable player in the national beverage alcohol market."

"These past few months have also reinforced just how important our hometown of Kitchener-Waterloo is to our business, and we are to the community," continued Croft. "The outstanding growth we're experiencing is the result of a commitment from everyone here at Waterloo Brewing to help each other through this time, and help our Company and our community emerge stronger for the experience."

Waterloo Brewing's board of directors has approved the quarterly dividend at C$0.02625/share. The dividend is payable on October 30, 2020, to shareholders of record as of October 16, 2020.


03 September, 2020