World News: 11:00 GMT Thursday 30th May 2019. [Brick Brewing Co. Limited via Globe Newswire via SPi World News]
KITCHENER, Ontario, May 30, 2019 (GLOBE NEWSWIRE) -- Brick Brewing Co. Limited (“Brick” or the “Company”) (TSX: BRB), Ontario’s largest Canadian-owned brewery, today released financial results for the first quarter which ended April 28, 2019. Brick reported EBITDA of $1.65 million on net revenue of $12.3 million. The adoption of IFRS 16 (leases) enhanced EBITDA by $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 $0.025/share. The dividend is payable July 31, 2019 to shareholders of record as of July 17, 2019.
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 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 Company 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 Company 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 30th May 2019
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