CANADA: Q1 drags on Big Rock Brewery nine-month sales
- Nine-month net profits hit CAD1.68m (US$1.66m), versus losses of CAD8.46m in 2010
- Net sales dip by 0.25% to CAD35.16m
- Operating profits slide by 51% to CAD2.2m
- Consumers trade down to cheaper beers, high costs hamper profits
Big Rock Brewery has reported a drop in net sales for the first nine months of 2011, as consumers traded down to cheaper beer and growth in the third quarter failed to fully offset decline at the start of the year.
Big Rock said yesterday (8 November) that net sales for the nine months to the end of September dipped by 0.25% on the same period of 2010, to CAD35.16m (US$34.7m). Beer volume sales rose by 4%, largely thanks to a 19.6% increase in the third quarter.
Net sales for the third quarter rose more slowly, by 14.6% to CAD14m, because consumers opted for cheaper beers amid a tough economic climate, Big Rock said. Operating profits for the nine months slumped by 51% to CAD2.2m, and by 21.6% in the third quarter, due to a mixture of pressure on sales and higher packaging costs, the group said.
Net profits were skewed by one-off charges in the group's previous year, related to its transformation to a public company at the beginning of 2011. The switch to IFRS financial reporting standards led to fair value losses on Big Rock's trust units and charges relating to dividends paid to trust unit holders, resulting in company net losses of CAD8.46m for the first nine months of 2010.
In the same period of 2011, Big Rock reached net profits of CAD1.68m. In the third quarter, profits fell by 41.6% to CAD1.08m.
For the company announcement, click here.
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