Canada, ON: Waterloo Brewing announces Q3 financial results
Waterloo Brewing Ltd., Ontario's first craft brewery, announced on December 9 financial results for the third quarter of fiscal 2022 which ended on October 31, 2021. Waterloo Brewing reported EBITDA of C$4.3 million, an increase of C$0.3 million or 7.4% over the prior year, on net revenue of C$26.9 million. Net revenue increased by C$4.1 million or 17.8% from the third quarter of fiscal 2021.
"I am encouraged with our third quarter results. Despite industry-wide beer category softness, supply chain challenges and inflationary cost pressures, we continue to deliver top line growth to the business. Our co-manufacturing business continues to exhibit healthy growth and we are expecting to close the year off on a strong note," said George Croft, President and Chief Executive Officer of Waterloo Brewing.
The total volume of the company's owner brand products was flat versus the year prior compared to an industry volume decline of 4.2% in the third quarter of fiscal 2022. LandShark® continues to perform exceedingly well with growth of 49% during the third quarter. In-case promotions are attracting new consumers to the premium brand and fueling the growth of the new LandShark® Seltzer brands, which were introduced in the first quarter of fiscal 2022
The company faced inflationary cost pressures on key input materials and supply chain challenges related to the COVID-19 pandemic but was still able to maintain a 22% gross margin in the third quarter and grow overall production volume.
"In order to minimize our supply chain risk, our team has been proactively securing supply of critical materials as well as locking in pricing on key contracts in anticipation of rising input costs in the coming year," said Russell Tabata, Chief Operating Officer at Waterloo Brewing.
Waterloo Brewing's board of directors has approved a quarterly dividend at C$0.0304/share; an increase of 10% from last quarter. The dividend is payable on January 28, 2022, to shareholders of record as of January 14, 2022.
Third Quarter Highlights:
Net revenue increased 17.8% to C$26.9 million, up from C$22.8 million in the prior year.
Gross margin of 22.2% was slightly better than the prior year; incremental co-manufacturing in the period helped to improve performance.
Selling, Marketing and Administration expenses were C$3.4 million, up from C$2.6 million in the prior year.
EBITDA increased 7.4% to C$4.3 million, compared to C$4.0 million in the prior year.
The Board of Directors approved a quarterly dividend, C$0.0304/share, an increase of 10%, payable January 28, 2022, to shareholders of record as of January 14, 2022. The dividend is classified as an eligible dividend.
Year-to-Date Highlights:
Net revenue increased 34.3% to C$83.6 million, up from C$62.2 million in the prior year.
Gross Margin of 26.5 % was slightly improved versus 26.1% in the prior year.
Selling, Marketing, and Administration expenses were C$11.9 million, up from C$8.9 million in the prior year.
EBITDA increased 30.4% to C$15.6 million, compared to C$11.9 million in the prior year.
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