Positive third quarter yield despite Dorian impact
NASSAU, BAHAMAS – Commonwealth Brewery Ltd (CBL) says it is ‘cautiously optimistic’ on its short term outlook post-Hurricane Dorian, with its third quarter net revenue increasing by 2.9 percent over the same period last year.
The BISX-listed brewer which is which is 75 percent majority-owned by international giant, Heineken in its consolidated financial statements for the third quarter of 2019 noted that “net profit for the three-month period ended September 2019, grew $1,684,583 from a loss position for the comparative period of 2018.”
The company noted that the net revenue increase for the third quarter out-paced declines in the first half of the year and ended slightly behind the comparative period in 2018 by 0.5 per cent despite operating interruptions due to hurricane Dorian.
“The third quarter 2019, yielded a continued positive trend in which net revenue grew 2.9 per cent comparatively,” the report read.
“Hurricane Dorian destroyed one of Commonwealth Brewery Limited’s eight retail outlets, in Freeport, as well as the Company’s three retail outlets and the Distribution Centre in Abaco. By the end of September, however, we had reorganized our route to market and resumed distribution on both islands.
“Operating expenses year to date September reduced by 0.9 per cent, supported by a continued decline of 3.9 per cent during the quarter, principally driven by the cost alignment measures reported on earlier in the year,” the company said.
It further noted that net income for the year to September was $4,981,847, compared to $5,482,757 in 2018, reflecting the one-off restructuring costs, and stronger revenue performance since the second quarter 2019.
Notably net profit for the three-month period ended September 2019, grew $1,684,583 from a loss position for the comparative period of 2018.”
Back in February Commonwealth Brewery announced today that 73 employees had been terminated in a restructuring exercise of its 700 Wines and Spirits retail division.
The company said that 53 employees were let go on New Providence and 20 on Grand Bahama as their roles were made ‘redundant’, a move its said was brought on by increased operational costs as well as increased competition from imported beer brands.
The report continued: “Results this year are continually encouraging and as stated in the quarter two interim accounts, indicate that our cost realignment, infrastructural and work force improvements, together with our continued commercial focus, are producing the desired results.
“We are cautiously optimistic on our short-term outlook post-Dorian and will continue to adapt or strategy to enhance value to shareholders.”