World News: 11:00 GMT Thursday 6th December 2018. [Brick Brewing Co. Limited via Globe Newswire via SPi World News]
KITCHENER, Ontario, Dec. 06, 2018 (GLOBE NEWSWIRE) -- Brick Brewing Co. Limited ("Brick" or the "Company") (TSX: BRB), Ontario’s largest Canadian-owned brewery, today released results for the third quarter ended October 28, 2018.
Net revenues for the third quarter of fiscal 2019 grew to $14.2 million, up from $11.7 million in the third quarter of fiscal 2018. Gross profit margins for the quarter increased to 28.1% versus 26.5% in Q3 of the prior year. Margin expansion was supported by strong pricing, enhanced product mix as well as overall cost reductions in operations. EBITDA 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 CEO. “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% growth in EBITDA. Our Laker brand posted 4% volume growth and our LandShark brand continued to resonate with consumers and grew 6% in the quarter. Our Waterloo brands declined 8% 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. Overall, the beer industry saw a decline of 5.9% versus prior year. In comparison, our owned beer business grew 2% 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% increase in the quarterly dividend, to $0.025/share, up from $0.020/share. The dividend is payable January 29, 2019 to shareholders of record as of January 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.
Croft added, “Although we are pleased with our Q3 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 following financial information should be read in conjunction with the audited annual financial statements of the Company prepared under IFRS for the year ended January 31, 2018.
About Brick Brewing
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. In 2011, Brick purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark® and Margaritaville®. In addition, Brick utilizes its leading-edge brewing, blending and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers and ciders. Brick trades on the TSX under the symbol BRB. Visit us at .
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Corporation does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.
* EBITDA is a non-IFRS earnings measure, therefore it does not have any standardized meaning prescribed by International Financial Reporting Standards and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization, gain on disposal of property, plant, and equipment, and share based payments. Management uses this measurement to evaluate the operating results of the Company. This measure is also important to management since it is used by the Company’s lenders to evaluate the ongoing cash generating capability of the Company and therefore the amounts those lenders are willing to lend to the Company. Investors find EBITDA to be useful information because it provides a measure of the Company’s operating performance.
Globe Newswire: 11:00 GMT Thursday 6th December 2018
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