Canada, ON: Waterloo Brewing reports increase in EBITDA and net revenue in Q1 2021
Waterloo Brewing Ltd. ("Waterloo Brewing" or the "Company"), Ontario's first craft brewery, announced financial results for the first quarter of fiscal 2022 which ended on May 2, 2021.
Waterloo Brewing reported EBITDA of C$3.2 million, an increase of C$1.1 million or 52.4% on net revenue of C$22.5 million. Net revenue increased by C$7.7 million or 51.5% from the first quarter of fiscal 2021.
"We are happy with our strong start to the year and our record first quarter results," said George Croft, President and Chief Executive Officer of Waterloo Brewing. "Our owner brands' volume continues to grow at double-digits and our co-manufacturing of high-value global beverage brands more than doubled. We are growing in all sales channels and significantly outpacing the balance of the industry."
The total volume of products sold by Waterloo Brewing in the quarter increased +57%, with every brand in the portfolio experiencing year-over-year growth for the eighth-straight quarter. Laker growth is at 8%, LandShark® growth is at 83%, Waterloo growth is at 32%, and Seagram delivered 40% growth. Gross margin performance temporarily declined in the quarter due to pandemic-related issues and the last outsourced production that occurred prior to the ramp-up of new internal production capacity in April. Waterloo Brewing anticipates delivering margin improvements for the balance of the year.
Late in the quarter, Waterloo Brewing launched Waterloo Watermelon and Tart Cherry Radlers, LandShark Seltzer and Seagram Island Time Coconut Lime. The Company believes these new launches continue to demonstrate innovation and leadership within the category. Steady progress is being made to improve brand support to better position brands for long-term sustainable growth. Waterloo Brewing is confident in the ability to innovate and build strong brands that complement the current portfolio and help support the mission of long-term profitable growth.
"As the COVID-19 pandemic slowly winds down, our primary focus continues to be on operating our brewery and our business safely and working hard to continue to innovate and meet customer demand," Croft added.
"To support hospitality workers and help the on-premises channel recover from the devastating impact of the pandemic, Waterloo Brewing will be selling kegs and tall cans of its most popular brands at a significantly reduced price to pubs and restaurants in Ontario. We are thankful to our outstanding team of coworkers and retailers for their continued diligence which has allowed us to continue to operate and help grow our business during this most difficult time."
Waterloo Brewing has taken various steps to ensure the capacity is there to support this accelerating growth, including the installation of a state-of-the-art can line which has increased annual canning capacity by 750 thousand hectoliters to 1.2 million hectoliters. Waterloo Brewing continues to work hard on its supply chain with the goal of making the integrated supply chain more efficient, reducing costs, and increasing flexibility. Waterloo Brewing expects to complete all this work in the second quarter of F2022, while continuing to invest in capacity to take advantage of the fast-growing owner brands and co-manufacturing business. While the industry remains competitive, Waterloo Brewing is optimistic for continued growth of the current brand portfolio, innovations, and co-manufacturing business.
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