US: Strong Q4 boosts Craft Brew Alliance, but FY profits slide
- Full-year net profits slide 22.4% to $1.96m
- Net sales in 12 months up 5.8% to $179.2m
- Operating profits slips 26% to $3.8m
- Strong Q4 sees FY volumes up 11%
Craft Brew Alliance saw a strong end to 2013
Craft Brew Alliance (CBA) has been buoyed by strong fourth-quarter sales, but higher costs and the loss of contract brewing deals dragged down full-year profits.
The Pacific north-west brewing group said on Thursday (6 March) that net profits in the 12 months to the end of December fell by 22.4% to US$1.96m. Sales in the period were up by 5.8% to $179.2m, but operating profits slipped by 26% to $3.8m.
In Q4, net profits jumped by 132%, while net sales were up 5% to $44.2m. Operating profits in the final three months of the year were up 40.7% to $1.4m.
Fourth-quarter volumes were up 10%, which the company said reflected “continued momentum across the Kona Brewing, Redhook Ale Brewery, Omission and Square Mile Cider Company brand families and stabilisation of the Widmer Brothers brand”.
However, the group noted that in the full-year brewing revenue fell by 40% as due to the "termination of contract brewing contracts in late 2012”, including an arrangement with Anheuser-Busch InBev-owned Goose Island. Meanwhile, SG&A expenses rose $1.6m in the full-year to $45.6m, which reflected continued investments in brand development and sales capabilities, CBA said.
To read the company's full statement, click here
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