US: Big Rock hit as consumers trade down
Big Rock Brewery Income Trust has seen a 19% rise in net income for the quarter to 30 September to US$2.2m, largely due to increased sales volume.
However, the company said year-to-date net income was down 11% to US$4.9m due to the growth of lower margin value brands and a non-cash stock based compensation charge of US$258,660 booked in the second quarter.
In the third quarter, net income per unit increased to US$0.37 from US$0.32. But, year-to-date net income per unit decreased to US$0.83 from US$0.95.
Sales volumes increased by 30% to 62,740 hl for the third quarter. The majority of the volume increase is attributable to new business in value and private label brands, however Big Rock's proprietary premium brand volume was up by 4% quarter over quarter. Year-to-date volumes are up 8% to 160,820 hl from 149,242 hl.
Net sales revenue increased to US$11.77m, up 16%, in the quarter.
"Consistent with trends reported by other brewers, Big Rock continued to experience a shifting sales mix as value brands grew at a faster rate than premium proprietary brands. This has resulted in lower revenue per hectolitre," the company said.
Year-to-date net sales revenue decreased by US$11 per hectolitre.
The Trust said the figures included the operations of the Trust, Big Rock Brewery Ltd and its wholly owned subsidiaries Kamloops Brewery Ltd and Whistler Brewing Company Ltd.
Sectors: Beer & cider
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