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CANADA: Sales and profits down for Sleeman in Q2

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Sleeman Breweries has reported reduced sales and profits for the second quarter of the current fiscal year.

For the quarter to 2 July, the Canadian brewer said that net revenues reached C$57.9m (US$47.8m), down from C$58.7m in the corresponding period last year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at C$7.7m, against C$9m last year. The brewer said the decline in EBITDA was principally due to the C$1m increase in last year's second quarter results stemming from the effects of the large brewers' distribution company strike in British Columbia.

Net earnings were C$2.5m, down from C$3.8m in the second quarter of 2004, while normalised diluted earnings per share fell from C$0.23 to C$0.17.

"We had a challenging quarter due to the wet and cool spring across the country, the National Hockey League lockout and continued price discounting in our key markets," said John Sleeman, chairman and CEO. "In addition, the second quarter of last year benefited from the distribution strike in British Columbia and the first summer sales of our very successful low carbohydrate beer - Sleeman Clear.

"To meet our stated objective to deliver strong, profitable growth in a competitive environment we will continue to focus on cost management and improved efficiencies. Combining this focus with increasing sales of our newest Sleeman offering, Sleeman Original Draught, improving weather and the end to the National Hockey League lockout, we are confident our results for the second half of the year will allow us to meet our financial objectives for the year."

For the first half, net revenues rose by 1% to C$98m, but EBITDA fell from C$15.5m to C$13.9.

Net income reached C$4.1m, or $0.24 per share on a diluted basis, against C$6.1m, or $0.37 per share in the first six months of 2004.


Sectors: Beer & cider

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