US: Pyramid income up on acquisitions and sales
Pyramid Breweries yesterday reported a 25.2% overall growth in net sales in its second quarter, resulting from both the acquisition of certain Portland Brewing Company assets in July, 2004 and strong beer sales growth in its key West Coast markets.
Net income increased 15.9% to US$168,000 and EBITDA improved 26.4% to US$1.024m.
Sales for the quarter ended June 30, 2005 were US$13.0m, an increase of US$2.62m over the same quarter of the prior year. Beverage segment net revenues increased 29.6%, or US$2.0m, versus the same period in 2004, driven by a 32.4% increase in shipments to 63,800 barrels.
Of the total shipments, beer shipments increased 45.2% to 50,100 barrels while soda remained flat at 13,700 barrels. The primary drivers of the beer sales increase were the strong growth of Pyramid branded products, the addition of the MacTarnahan family of brands acquired as part of the company's July 31, 2004 acquisition of certain Portland Brewing assets and increased contract beer production.
All sales regions increased shipment volumes over the second quarter of 2004, with the states of Washington, Oregon and California all recording double digit growth. Alehouse segment sales increased 16.6%, or US$588,000, over prior year to US$4.1m for the quarter, driven by US$523,000 in sales at the new Portland Taproom, which was acquired as part of the Portland Brewing asset acquisition, and a US$65,000 increase in same store sales.
"Generally, the overall direction of the business is becoming more favourable. Our investment in sales and marketing resources in the Beverage Division, earlier in the year is propelling volume and revenue growth. We are seeing continuing growth in consumption and sales to retailers. Same store draft sales are increasing and we are seeing favourable results emerge from increasing market penetration in existing and new markets," said John Lennon, CEO.
Lennon further stated "Strong company performance in June, which featured the best financial performance by the company in two years, capped a solid result for the second quarter of 2005. The company began to realise results from added investment in sales and marketing resources and improved cost efficiencies stemming from consolidation of our Seattle-based brewing production to our Portland facility."
For the first half of the year, Pyramid's net sales increased 25.4%, to US$22,920,000. Total shipments for the beverage division increased 45.5%, to 110,600 barrels.
Net loss for the six-month period ended June 30, 2005 increased to US$963,000 compared to a net loss of US$851,000 for the same period of the prior year. EBITDA for the first half of the year improved to US$717,000 compared to US$469,000 in the prior year.
Sectors: Beer & cider
- Bacardi Seeks Own History at Bombay Sapphire Home
- NPD: The Craft Cocktail Revolution
- No Home Comfort for TWE as Bids Collapse
- Private-equity bids "over" - TWE head
- Interview - WoSA chief executive
- Suntory Holdings to split beer, spirits division
- Diageo's Smirnoff Sours
- Anheuser-Busch InBev appoints new AmBev CEO
- 'Carlsberg suspends production at Russian brewery'
- Treasury Wine Estates pulls plug on takeover talks