CANADA: Big Rock Brewery reaps FY reward for price hikes

By Andy Morton | 20 March 2013

FY like-for-like net profits climbs by 63% to CAD4.1m (US$4m)
Net sales in 2012 up by 1.9% to CAD46.1m
FY operating profits jumps by 68%, hitting CAD5.6m
Volumes fall by 1.5% to 217,646 hectolitres

Big Rock released its FY results yesterday

Big Rock Brewery raised prices and cut costs last year to help post a healthy leap in full-year profits despite a drop in volumes.

Net profits jumped by 63% to CAD4.1m (US$4m) in the 12 months to 30 December, the Calgary-based company said yesterday (19 March). Net sales were up by 1.9% to CAD46.1m over the same period while operating profits increased by 68% to CAD5.6m.

It was a return to form for the Canadian brewer, which in 2010 posted a full-year net loss of CAD8.2m. The company climbed back into the black in FY results last year.

Big Rock said yesterday: “Volume-driven price promotions utilized in 2011 were scaled back significantly for 2012, resulting in comparatively lower sales volumes but higher profit margins.”

No fourth-quarter results were released, but the company posted a 35% profits increase in Q3.

Big Rock also announced that board members Gordon Tallman and James Jackson will not stand for re-election at the company's meeting of shareholders on 3 May.

To read the company's official statement, click here.

Expert analysis

Global Beer Tax Tables, 2012

This report covers 58 markets and comprises a series of tables covering taxation base, historical excise rates, legal controls and a calculation of the total taxation burden on beer.

Sectors: Beer & cider, Company results