Nine-month net profits rise by 37.7% to CAD1.04m (US$1.05m)
YTD net sales up by 3.4% to CAD27.7m
Operating profits (EBITDA) rise by 18.8% to CAD3.8m
Q3 losses caused by “unique” challenges
Brick Brewing has announced a jump in nine-month profits despite operational “challenges” in Q3.
Net profits in the nine months to the end of the October rose by 37.7% to CAD1.04m (US$1.05m), the Ontario-based brewer said today (6 December). Sales in the period edged up by 3.4% to CAD27.7m, while operating profits increased by 18.8% to CAD3.8m.
In Q3, the company reported a net loss of CAD416,252 compared to a profit of CAD84,601 on the prior year. Sales in the three months fell by 4.6% to CAD7.54m.
Brick pointed to a number of “unique” and “non-recurring” challenges in Q3 for the performance. These included an “unexpected” drop in contract packing volumes, caused by a supply-chain issue. Shipments of Laker products also fell by 7% as “sustained” price cuts by national brands took their toll, the company said.
Looking ahead, Brick president & CEO George Croft said the company is committed to growing its Seagram and Waterloo brands. “In our primary market of Ontario, these brands demonstrated exceptional counter-sales growth of 44% and 30% respectively in Q3,” said Croft. “In the upcoming quarters, we will be increasing our marketing budgets dedicated to these brands.”
Brick acquired the Canadian licence for Seagram Coolers last year from Pernod Ricard subsidiary Corby Distilleries for CAD7.3m.
Croft added: “I am proud that our company has become so resilient and adaptive to tough industry situations we face from time to time. Although the financial performance is below our expectations, the responses to challenges within the quarter exemplify the culture at Brick Brewing.”