NASSAU, BAHAMAS — Commonwealth Brewery experienced a notable 11 percent growth in net revenue during its third quarter, paralleled by a corresponding increase in operating expenses.
The vertically integrated BISX-listed brewer in its unaudited financial statements for the nine months ending September 2023, noted that it continued its strong performance in 2023 driven by its strong portfolio, solid in-market execution, and ongoing growth of tourism.
"In the third quarter, CBL delivered double-digit net revenue growth (+11 percent) when compared to the same period in 2022. Revenue growth was delivered through a combination of Revenue per hectolitre growth - to offset ongoing inflation - and volume growth in key categories such as beer, malts, and spirits. Key highlights of the period included the continued deployment of Kalik's "Proud to Be" campaign and the acceleration of our Heineken® Silver launch," the company noted.
The company's operating expenses increased to $30 million for the quarter (+11 percent), which was primarily driven by increased production and logistics expenses coupled with increased selling and marketing expenses, which were partially offset by lower personnel expenses and depreciation while compared to the same quarter in 2022.
"Certain of these increases were driven by the ongoing pressure from inflation. CBL will continue to implement cost productivity programs and other measures to mitigate any profit margin dilution."
The company further reported: "In the third quarter, CBL recorded a net profit of $2.3m which is a slight improvement versus the comparative period in 2022 (net profit of $2.2m). This was mainly driven by increased selling & marketing expenses behind CBL's strategic brands, continued cost pressure on our raw & packing materials, and increased finance expenses which is mainly due to FX.
"Overall, CBL realized a comprehensive income of $8.8 million for the first nine months of 2023 which displays the sustained growth versus the total comprehensive income of $8.4 million in the comparative period in 2022."
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