• YTD net profits drop by 73% to CAD280,000 (US$263,000)
  • Net sales up 7% to CAD29.7m
  • Operating profits (EBITDA) up 18% to CAD4m
  • Q3 net profits turnaround to CAD683,000 after loss last year

Brick Brewing Co has posted a sharp drop in year-to-date profits as expenses outpaced a sales rise.

Net profits dropped by 73% to CAD280,000 (US$263,000) in the nine months to 27 October, the Canadian brewer said yesterday (12 December). Net sales were up 7% to CAD29.7m over the same period while operating profits (EBITDA) climbed by 18% to CAD4m.

Selling, marketing and administration expenses jumped by CAD1.2m, or 22%, to CAD6.4m, and were the main reasons for the profits fall.

Q3 sales were even stronger, up 27% to CAD9.6m, and quarterly profits came in at CAD683,000. The profits gain follows last year's Q3, when Brick posted a CAD416,000 loss.

Brick Brewing's president and CEO, George Croft, said: “Overall, we're very pleased with the results we're reporting today. In an environment where the overall beer category volume was largely flat in the third quarter, we've been able to show growth in our supported brands while also significantly improving our EBITDA performance.”

Croft said results will likely be more “normalised” in the future, as the company focusses on “execution, cost control and improved efficiency”.

The profits drop, along with a similar drop in Q1 because of increased advertising expenses, follows a strong 2012 for Brick, posting an 11% profits jump and a 5% sales increase.

Brick, whose brands include the Laker family, saw its share price on the Toronto Stock Exchange climb yesterday.

To read the company's full results, click here.