Craft Brew Alliance Reports First Quarter 2020 Results, Including $0.03 EPS and Beer Gross Margin Expansion
06 Maio 2020 - 5:00PM
Business Wire
Continued strong performance for Kona in the
off-premise channel, where flagship Big Wave Golden Ale grew 20% in
the latest 17 weeks per Nielsen despite headwinds from global
pandemic
Craft Brew Alliance, Inc. (“CBA”) (Nasdaq: BREW), a leading
craft brewing company, reported financial results for the first
quarter ended March 31, 2020 in a Form 10-Q filed with the
Securities and Exchange Commission today.
While our first quarter was impacted by the current global
COVID-19 pandemic, most notably with the closure of our brewpubs to
on-site guests and significantly reduced demand for draft beer, we
quickly adapted and tightly managed our spend to directly address
those impacts. These efforts contributed to earnings per share of
$0.03, a $0.41 improvement over the first quarter last year, as
well as beer gross margin expansion of 60 basis points to 38.6%,
and a 3% increase in beer revenue per barrel. Our first quarter
shipment decrease of 6% also reflects the impact of COVID-19;
however our performance in the off-premise was largely in line with
internal expectations as we lapped the impact of our biggest-ever
distribution drive and marketing investment behind Kona in the
first quarter of 2019. Additionally, despite industry-wide
decreases in shipments due to on-premise closures, our portfolio of
established brands available in a variety of package formats
created value for our business, as well as our distribution and
retail partners, as consumer behavior began to shift to more
familiar brands in larger pack sizes.
During the quarter, we also continued working closely with
regulators in support of our pending combination with
Anheuser-Busch (“A-B”), which received overwhelming support by a
majority of non A-B shareholders at our shareholder meeting in
February and is expected to close this year.
“First and foremost, we are exceedingly thankful that our
employees remain safe and in good health during this global
pandemic,” said CBA CEO Andy Thomas. “Turning our attention to
business results, I am proud that even against this unprecedented
backdrop, complete with all of its challenges, our decisiveness in
quickly adapting allowed us to manage our financials while still
looking out for the well-being of our employees and stakeholders.
We are mindful that thus far, we have been able to weather the
initial impacts remarkably well compared to others in our space.
Looking forward, we remain squarely focused on sustaining our
operational health, completing key initiatives such as the new Kona
brewery, and closely tracking consumer shifts, as we continue
through the regulatory review process in preparation for our
exciting combination with Anheuser-Busch as planned.”
While Kona’s first quarter shipments were impacted by the
current crisis and significant reduction in demand for draft beer,
the 2% decrease compared to last year was in line with our internal
expectations. As a reminder, in Q1 2019, we launched our
largest-ever national marketing investment behind Kona, which
included a wholesaler distribution drive in February and
significant promotional activity in March to drive awareness. As a
result, we anticipated Kona’s growth rate would flatten
comparatively in 2020. Acknowledging these impacts, we are
providing certain off-premise metrics for the first 17 weeks
year-to-date, as reported by Nielsen, to offer a more comprehensive
view of Kona’s performance this year. In the off-premise channel
year-to-date, Kona is up 9%, driven by a 20% increase for flagship
Big Wave Golden Ale, over the same 17-week period a year ago.
“We’re pleased that our first-quarter performance is largely in
line with our internal expectations and that Kona was able to grow
and hold onto year-ago gains despite the significant pullback in
spend,” said CBA Chief Financial and Strategy Officer Christine
Perich. “Additionally, our $0.03 earnings per share for the quarter
is $0.09 ahead of consensus and further validation of our teams’
ability to tightly manage our financials. As we continue navigating
through these historic circumstances, we are committed to
supporting the health and well-being of our people, while also
closely monitoring the situation and working with local and state
governments as the restrictions are lifted and more normal
operations begin to resume.”
In light of our pending combination with A-B, we have suspended
the practice of holding investor conference calls and providing
forward-looking guidance. As previously disclosed, following the
approval by shareholders, the proposed expanded partnership remains
subject to the satisfaction of customary closing conditions,
including receipt of requisite regulatory approvals. For more
information on our first quarter performance, please refer to the
Form 10-Q filing available on our investor relations website at
https://investors.craftbrew.com/financial-information/sec-filings.
About Craft Brew
Alliance
CBA is an independent craft brewing company that brews, brands,
and brings to market world-class American craft beers. Our
distinctive portfolio combines the power of Kona Brewing Company, a
dynamic, fast-growing national craft beer brand, with strong
regional breweries and innovative lifestyle brands Appalachian
Mountain Brewery, Cisco Brewers, Omission Brewing Co., Redhook
Brewery, Square Mile Cider Co., Widmer Brothers Brewing, and
Wynwood Brewing Co. CBA nurtures the growth and development of its
brands in today’s increasingly competitive beer market through our
state-of-the-art brewing and distribution capability, integrated
sales and marketing infrastructure, and strong focus on
partnerships, local community and sustainability.
Formed in 2008, CBA is headquartered in Portland, Oregon and
operates breweries and brewpubs across the U.S. CBA beers are
available in all 50 U.S. states and 30 different countries around
the world. For more information about CBA and our brands, please
visit www.craftbrew.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200506005946/en/
Media and Investor Contact:
Jenny McLean, Senior Communications Director,
jenny.mclean@craftbrew.com
Craft Brew Alliance (NASDAQ:BREW)
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