Canada: Ontario’s Brick Brewing Co. reports higher EBITDA, net revenue in Q1 this year
Brick Brewing Co. Limited, Ontario’s largest Canadian-owned brewery, on May 30 released financial results for the first quarter which ended April 28, 2019.
Brick reported EBITDA of C$1.65 million (+47%) on net revenue of C$12.3 million (up 16%). The adoption of IFRS 16 (leases) enhanced EBITDA by C$0.2 million in the first quarter.
George Croft, Brick President and Chief Executive Officer commented, “Our EBITDA results in the first quarter were strong, delivering both volume and top line growth. I am pleased with the premiumization of our portfolio and the continued success of our co-pack business. Our Waterloo family grew 11%, LandShark® and Margaritaville® brands grew 55%, and co-pack business grew 14% versus prior year. The overall beer category experienced softness driven by an unseasonably cold and wet spring which drove the Ontario industry volume lower by 2.2%. Our Laker family was most impacted by both the industry volume softness and very aggressive pricing on National mainstream brands, declining 10% vs prior year. We have adjusted our Laker business plans to address this trend and early indications are showing positive results with +1% volume growth in the last four weeks.”
“January 2019 saw us break ground on the 65,000 square foot expansion of our facilities. The project is progressing well – both on time and on budget,” commented Russell Tabata, Brick’s Chief Operating Officer. “We expect our warehouse expansion, small batch brewhouse and taproom projects to be completed in September 2019 becoming a cornerstone of our future success.”
Croft added, “Our first quarter results signal a positive start to F2020. We are now entering our peak summer selling period and we are working hard to maintain our momentum. With the relaunch of our Laker can-in-case offer, our LandShark® promotions, and our Waterloo craft pricing strategy, we are positioned well for success. All of these contribute to our confidence in our ability to deliver value and growth to our shareholders in F2020 and for the long term.”
Brick’s board of directors has also approved a quarterly dividend of C$0.025/share. The dividend is payable July 31, 2019 to shareholders of record as of July 17, 2019.
Torna
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