News Column

Craft Brew Alliance Announces Second Quarter 2014 Results

August 23, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Craft Brew Alliance, Inc. ("CBA") (Nasdaq:BREW), an independent craft brewing company, reported its financial results for the quarter ended June 30, 2014. The results for the second quarter are in line with management's expectations, and the Company confirms previously reported 2014 guidance. Summary highlights of this release include CBA's distinctive portfolio strategy continued to drive depletion growth in the second quarter, resulting in a 9% increase in depletions for the first half of 2014.

Increased demand for CBA's well-loved brands, including Kona Brewing, Redhook Brewery and Omission, and the introduction of new favorite beers, such as Redhook KCCO Black Lager, led to a 17% increase in net sales and a 15% increase in total beer shipments in the first six months.

Our gross margin rate increased by 230 basis points to 32.8% in the second quarter, which contributed to a 240 basis point increase and 30.3% gross margin rate year-to-date. We attribute the increase to significant advancements in our brewery efficiency and utilization and supply chain.

"We continue to achieve steady and consistent growth through leveraging the power of CBA's advantaged strategy and our leadership in brewing, branding and bringing to market world-class American craft beers," said Andy Thomas, Chief Executive Officer of CBA. "As we communicated in our first quarter earnings call, we set out to achieve solid performance and continued improvement in the second quarter, and our results underscore that we delivered on that promise." Second quarter 2014 financial highlights Depletion volume grew 9% from the second quarter in 2013.

Net sales and total beer shipments grew 16% and 13%, respectively, for the quarter. We attribute these increases to the continued organic growth of our complementary portfolio of high-quality, award-winning beers such as Widmer Brothers Upheaval IPA, Redhook KCCO Black Lager, Kona Big Wave Golden Ale and Omission Beer.

Gross margin rate increased 230 basis points to 32.8% over the second quarter in 2013.

Capacity utilization increased to 87% from 77% in the comparable three-month period in 2013.

As a percentage of net sales, our selling, general and administrative expense ("SG&A") remained steady at 26.8% in the second quarter, compared to 26.4% for the second quarter of last year.

Diluted earnings per share for the second quarter improved to $0.10, compared to $0.06 for the same period last year. Year to date 2014 financial highlights Depletion volume grew 9% over the first six months of 2013.

Net sales and total beer shipments grew 17% and 15%, respectively, in the six-month period ended June 30, 2014 compared to the first six months of 2013.

Gross margin rate increased 240 basis points to 30.3% over the comparable period in 2013.

Capacity utilization increased to 78% in the first half of 2014, compared to 68% in the first half of 2013.

As a percentage of net sales, our selling, general and administrative expense ("SG&A") decreased to 27.1% in the six-month period ended June 30, 2014 from 28.9% in the same period of 2013, primarily due to the increase in our net sales.

Diluted earnings per share for the first six months of 2014 improved to $0.09, compared to a loss per share of $(0.04) for the same period last year.

Keywords for this news article include: Finance, Craft Brew Alliance Inc..

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Source: Investment Weekly News


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