Commonwealth Brewery Limited (CBL) experienced a 22.3 percent decline in net income for the nine months ending September 30, 2011, with over a $3 million drop in profits.The figures for the BISX-listed company in the third quarter dropped year-on-year from$15 million in 2010 to$11.6 million in 2011. Part of the decline can be attributed to a $457,000 decline in total income for the period and a $2.6 million rise in total expenses.

A statement from the financial report said:"Other income year-to-date declined with B$1,275,969 due to lower rental income after divesting real estate in 2010 and non-recurring gains in 2010 from disposal of subsidiaries. Year-to-date operating expenses are up 3.9 percent due to a higher excise tax rate, higher operating costs due to improvements in information technology and higher employee benefit expenses."

The challenging nine months for Commonwealth Brewery was somewhat reflected in its performance during the three months ended September 30, 2011, highlighted by a 27.6 percent decline in net income for the period. Despite total income rising 6.1 percent to$27.6 million from$26 million year-on-year, total operating expenses grew 15.1 percent from$20.5 million in 2010 to$23.7 million in 2011. The net income drop

overshadowed the increase in revenue during the three month period.

"Revenue increased 5.7 percent in the third quarter compared to the same period last year,"said a statement from the report."Sales volume showed a strong performance in a continuing negative trading environment. Marketing programs contributed to the positive volume development in the third quarter . Revenue year-to-date is now up 1 percent compared to[the]same period last year."

The financial report comes a month after President and CEO of Commonwealth Brewery Leroy Archer announced he would step down from his position effective December 31 of this year. The day-to-day managing of the company will be handled by Nico Pinotsis, who will assume the duties of managing director on the first day of 2012.Archer was at the helm of Commonwealth Brewery through the company's$62.5 million initial public offering(IPO)in March and April of this year.

Commonwealth Brewery produces a number of leading beer brands in The Bahamas, including Heineken, Guinness and Kalik.

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