Canada: Russell Breweries announces 2nd quarter 2007 results
Russell Breweries Inc. a producer of premium beer for fine pubs and eateries, reports its unaudited consolidated results for the three months and six months ended December 31, 2006, according to company’s press release, February 28.
Revenues for the three months ended December 31, 2006 were $341,942 up 4.2% from revenues of $328,121 (restated) for the three months ended December 31, 2005. Revenues for the six months ended December 31, 2006 were $708,006 up 9.8% compared to $645,030 (restated) for the six months ended December 31, 2005. Due to an error of recording sales, revenues for the first quarter ended September 30, 2006 were previously overstated by $25,557 and net loss understated by $25,557 and revenues for the three and six months ended December 31, 2005 overstated by $18,443 and net loss understated by $18,443. A balance of overstatement of revenues and understatement of loss $40,794 relates to the third and fourth quarter of the year ended June 30, 2006.
Gross profit for the three months ended December 31, 2006 was $237,454 up 15% compared to $206,269 in the comparative period and gross profit for the six months ended December 31, 2006 was $476,070 up 20% compared to $396,817 for the comparative period reflecting in both periods the increase in sales and improvements in gross margin.
The Company incurred a net loss of $366,898 or $0.03 per share for the three months ended December 31, 2006 compared to the net loss of $67,155 (restated) or $0.01 per share in the comparable period in 2005. The increase in the net loss was due to increases in all expense areas as the company ramps up for introduction of its products in packaged goods, completion of a $1.5 million financing, migration from the CNQ Exchange to the TSX Venture Exchange and $86,976 in stock based compensation not incurred in the comparative quarter. The Company incurred a net loss of $525,756 or $0.04 per share for the six months ended December 31, 2006 compared to the net loss of $113,660 (restated) or $0.01 per share for the comparable period in 2005. The increase in net loss was primarily due to the increase in expenses incurred in the quarter ended December 31, 2006 for reasons noted above.
"We are delighted to have completed the financing in the quarter that enables us to scale up for the introduction of retail products this summer," said Andrew Harris, President, commenting on the quarter and six months results. "We have been running at capacity which has been a limiting factor for us. Over the next two months the additions we are making to our brewery will enable us to double our production. We are expecting a very exciting summer 2007 season."
Russell Brewing Company produces premium draught beer for fine pubs and eateries located in British Columbia. Using all natural ingredients and traditional beer-making techniques, Russell beer is brewed for people who love beer. Products include: Russell Cream Ale, Russell Pale Ale, Russell Honey Blonde Ale, Russell Extra Special Lager plus two seasonal brews, Russell Lemon Ale and Russell Winter Porter. Russell Brewing Company is a wholly owned subsidiary of Russell Breweries Inc.
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