Brick Brewing earns $1.02M in Q3, boosts dividend
BRICK BREWING Co. Ltd. has released results for the third quarter ended Oct. 28, 2018. Net revenues for the third quarter of fiscal 2019 grew to $14.2million, up from $11.7million in the third quarter of fiscal 2018. Gross profit margins for the quarter increased to 28.1 per cent versus 26.5 per cent in the third quarter of the prior year. Margin expansion was supported by strong pricing, enhanced product mix as well as overall cost reductions in operations. EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of fiscal 2019 improved to $2.8-million, reflecting an acceleration of strong results in fiscal 2019.
“This was a tremendous quarter for Brick Brewing,” noted George Croft, president and chief executive officer. “We’re reporting double-digit revenue and EBITDA growth. We’ve been able to expand margins, increase the investment in our brands, and still deliver 55-per-cent growth in EBITDA. Our Laker brand
posted 4-per-cent volume growth and our LandShark brand continued to resonate with consumers and grew 6 per cent in the quarter. Our Waterloo brands declined 8 per cent in the face of craft beer proliferation and strong competitive category pressure. The Waterloo brand will benefit considerably from our recently announced small-batch brewery and taproom where we can showcase our new expertly crafted innovated products. Over all, the beer industry saw a decline of 5.9 per cent versus prior year. In comparison, our owned beer business grew 2 per cent versus prior year, for the quarterly comparison. 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 today a 25-per-cent increase in the quarterly dividend, to 2.5 cents/share, up from two cents/share. The dividend is payable Jan. 29, 2019, to shareholders of record as of Jan. 15, 2019. “The increase in the dividend is simply a continuation of our commitment to deliver value to shareholders. We believe in our ability to both invest in growing our business while at the same time increasing returns to shareholders,” commented David Birch, chief financial officer.
Mr. Croft added: “Although we are pleased with our third quarter results, we will continue to focus on execution and will be working hard to ensure a strong finish for the year. Additionally, we are excited about our recently announced strategic direction to engage in the new and developing cannabis-infused beverage category and its impact on our future business.”
The financial information in the associated table should be read in conjunction with the audited annual financial statements of the company prepared under IFRS (international financial reporting standards) for the year ended Jan. 31, 2018.
(See BRB Table 1 on page 41)
About Brick Brewing Co. Ltd.
Brick is Ontario’s largest Canadian-owned brewery. The company is a regional brewer of award-winning premium quality and value beers and is officially certified under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Brick Brewing Co. was the first craft brewery to start up in Ontario and is credited with pioneering the present-day craft brewing renaissance in Canada. Brick has complemented its Waterloo premium craft beers with the popular Laker brand.
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John Harry Bowey, George H Croft, Stanley George Dunford, Edward Hume Kernaghan, Peter John Schwartz, David Robinson Shaw
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