USA: Capital Brewery cuts costs; profits soar
Capital Brewery has recently reported that its pretax earnings nearly quadrupled in fiscal 2005 although sales rose only modestly as it held the line on costs by focusing on its home market of Wisconsin.
Capital reported that pretax earnings for the year ended May 31 jumped to $220,598 from $60,170 in fiscal 2004, while net sales rose to $2,873,925 from $2,807,707. The company said its cost of goods sold decreased by 9.3 percent despite an increase in the amount of beer it produced, thanks to production cost controls and systems that were implemented in 2004.
Gross margin as a percentage of net sales increased to 35.7 percent in 2005 from 27.4 percent in 2004.
The company's working capital increased to $525,626 as of May 31, up from $287,838 a year earlier.
"Our performance exceeded the plan and our business expectations for the year," said Carl Nolen, Capital president and CEO. "We are pleased with the results of the past year and will continue to grow our business profitably."
Capital Brewery was founded on March 14, 1984. Located in a former egg processing plant building, Capital Brewery produced its first brew in the spring of 1986.
Currently, Capital Brewery produces 15 beers; seven Annuals, four Seasonals, and four Limited Releases. All beers, with the exception of Kloster Weizen, Weizen Doppelbock and Capital 1900, are produced under the strict "Reinheitsgebot." These are the German beer production purity laws, which date back to the 1500s. www.capital-brewery.com
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