US: One-off sale in 2011 sees Craft Brew Alliance H1 profits fall

• H1 net profits plunge by 84.6% to US$1.3m
• Net sales in six months to end of June rise by 12% to $82.8m
• Operating profits slide by 10.2% to $2.5m
• Volumes rise by 6.3% to 360,400 barrels

Craft Brew Alliance has posted a marked slide in net profits in the first half of 2012, as the period cycled a comparative boosted by a brewery sale.

The Pacific north-west brewing alliance said late yesterday (9 August) that net profits in the six months to the end of June were down by 84.6% to US$1.3m. Net sales in the period were up by 12% to $82.8m, thanks to rising volumes, but operating profits were down by 10.2% to $2.5m.

CBA noted that the first half of 2011 benefitted from a US$10.4m gain on the sale of its 42% stake in Fulton, also known as Goose Island, to Anheuser-Busch InBev.

Subsequently, net profits in the second quarter were down by 93.2% to $559,000. While net sales increased by 6% to $44.3m, operating profits in the three-month period dropped by 60% to $1.1m.

"We remain confident that our core strategy provides a compelling platform for long term-growth,” said CBA's CEO, Terry Michaelson.

"As we continue to grow our brands on a national basis, we expect to experience volatility in our results from quarter-to-quarter," he added.

"Our year-to-date results demonstrate the ongoing success of our strategy while the standalone quarter, when compared with the second quarter of 2011, demonstrates the volatility.

"We are confident that we will deliver long-term profit growth for our shareholders by continuing to invest in the underlying strengths of our brands.”

While full-year earnings-per-share guidance remains unchanged, the brewer said its sales growth should come in between 13% and 15% in 2012, up from the previous forecast of between 10% and 12%.

CBA was formed by the merger of Widmer Brothers Brewing and Redhook Ale Brewery in 2008.

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

For CBA's Q1 numbers, click here.