Canada, ON: Waterloo Brewing announces financial results for Q3 to October 25
Waterloo Brewing Ltd., Ontario's first craft brewery, announced financial results for the third quarter ending October 25, 2020.
Net revenue grew +40.2% to C$22.8 million, and EBITDA grew +18.7% to C$4.0 million for the third quarter of fiscal 2020. Gross profit margin declined in the third quarter to 21.9%.
"We are pleased with our performance in the third quarter, posting revenue growth of +40.2% and EBITDA growth of +18.7% compared to the previous year," stated George Croft, President, and CEO, Waterloo Brewing. "The strength of our brands is particularly evident in all retail channels where growth on our Laker family is +5%, Landshark +16%, and Waterloo Craft +16%. The grocery channel continues to expand during the COVID pandemic and pushed our third quarter growth to +51% in this channel."
"The challenges of last nine months presented a number of new obstacles for us, as it did for many other businesses. This included the increased cost and availability of aluminum cans, the associated cost of COVID related to keeping our employees safe, and the need to outsource some owner brand production to meet demand in advance of new operating capital being commissioned. We met each challenge head-on and we never lost sight of our goals or the path we set out on early in the year. We continue to execute our strategy that allows us to drive growth now and into the future," added Croft.
"To support this rate of growth we invested C$13.4 million of capital in capacity and capabilities, which are not yet fully installed," continued Croft. "Most importantly, the installation of our new can line is on track for completion in Spring 2021 and will add 750 thousand hectoliters per year of incremental capacity. Over the last few months, demand for our brands and co-manufacturing outstripped our can line capacity. Prior to the completion of the new can line in Spring 2021, we are using outsourced production solutions in the interim to allow us to continue to grow both our owner brand and co-manufacturing businesses".
As a result of the strength in operating and financial performance, Waterloo Brewing is announcing a 5% increase in the quarterly dividend, to C$0.02756 share, up from C$0.02625/share. The dividend is payable January 29, 2021, to shareholders of record as of January 15, 2021. "The increase in the dividend is simply our commitment to deliver value to shareholders. We believe in our ability to deliver sustainable results and increasing shareholder return supports our long-term goals," said David Birch, Chief Financial Officer.
"Our business has solid momentum, and that momentum continues to build," added Croft. "Strong brands, clear choices, and a group of the most resilient people have us set up to deliver another record-setting year for Waterloo Brewing."
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