Craft Brew Alliance bounces back in Q2 - results
- H1 net losses total US$948,000
- Net sales in the six months to the end of June up to 1.3% $101.5m
- Operating losses plunge to $1.26m
- Q2 net profits lift 88.6% to $2.26m
- Net sales in the three months to the end of June up 6.4% to $62.3m
- Operating profits rise 63% to $3.9m
Craft Brew Alliance reported its strongest ever sales quarter
Craft Brew Alliance (CBA) has posted a strong return to profit in the second quarter, however a weak Q1 led to an overall loss for the first half of 2016.
Net profits in Q2 hit US$2.26m but failed to bring numbers back into the black as the brewing group, which is 32%-owned by Anheuser-Busch InBev, reported a $948,000 net loss in the six months to the end of June. In Q1 results, the US company said that net losses in the three months to the end of March almost trebled versus the corresponding period a year ago. The rise in losses and 6% slide in sales was primarily due to the temporary closure of CBA's largest brewery in Portland, Oregon in the quarter.
CBA said net sales in Q2 were the "largest in the company's history", up 6.4% to $62.3m. The company called the second quarter a "strong rebound".
"Against a backdrop of increasing competition and dynamic industry change, CBA's ability to deliver the largest net sales, depletions and shipments in our history while making steady improvements to our core business health, is tangible validation of our strategy," said Andy Thomas, CEO, CBA. "Our solid second quarter performance not only reflects significant progress in strengthening our topline by sustaining [Hawaiian craft brewer] Kona's remarkable growth and supporting it with a stronger regional portfolio of strategic partners, it starts to reveal the benefits of our gross margin investments."
CBA has reiterated full-year guidance, expecting low single-digit shipment growth and average price increases of 1-2%.
In after-hours trading, the company's share price was up 19%.
To read CBA's official results statement, click here.
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