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US: Craft Brew Alliance recovers in Q2 but losses remain

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  • First-half net losses total US$679,000 
  • H1 net sales up by 3.3% to $92m
  • Operating losses hit $803,000
  • Q2 sales up by 10.1% to $52.7m

Craft Brew Alliance (CBA) remained in the red in its first half, despite shaking off the effects of changes to its supply chain in Q1.

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The Pacific north-west brewing firm said that net losses in the six months to the end of June were US$679,000, compared to profits of $1.3m the prior year. Sales in this year's first-half rose by 3.3% to $92m, while operating losses were $803,000, the company said yesterday (7 August). 

In Q1, the group, formed in 2008 through the merger of Widmer Brothers Brewing and Redhook Ale Brewery, also reported losses as sales were dragged down as it "optimised" its supply chain processes

But, in Q2, net profits jumped by 96% to $1.1m, as sales rose by 10.1% to $52.7m. Operating profits in the three months were up 80% to $2m. 

“Our improved second quarter gross margin and earnings reflect significantly better alignment of our shipments and depletions as a result of the supply chain adjustments we made in the first quarter,” said Mark Moreland, CBA's CFO.  

Looking forward, he added: “We expect to accelerate our top-line momentum building off of our strong second quarter results with commensurate expansion in our gross margin and earnings throughout the remainder of the year.”

However, the company noted that its contract brewing sales this year will be around half of 2012's due to the cancellation of an arrangement with Goose Island.

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


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