Mr. Benjamin Yu reports

RUSSELL BREWERIES INC. ANNOUNCES Q1 FISCAL 2015 RESULTS

Russell Breweries Inc. has released its financial results for the first quarter of fiscal 2015 ended Sept. 30, 2014.

The company is $25,748 EBITDA (earnings before interest, taxes, depreciation and amortization) positive for the first quarter of fiscal 2015, compared with EBITDA positive of $239,195 for the first quarter of fiscal 2014.

Fiscal 2015 first quarter highlights

• Gross revenue for the first quarter of fiscal 2015 were $2,475,006, down $2,281 or 0 per cent compared with $2,477,287 for the first quarter of fiscal 2014.
• Net sales for the first quarter of fiscal 2015 were $2,002,642, up $62,172 or 3 per cent compared with $1,940,470 for the first quarter of fiscal 2014.
• The gross margin for the first quarter of fiscal 2015 decreased by $179,128, or 15 per cent, to $979,400, compared with $1,158,528 for the first quarter of fiscal 2014.
• The gross margin percentage of the first quarter of fiscal 2015 was down 11 per cent to 49 per cent, compared with 60 per cent for the first quarter of fiscal 2014. The decrease in gross margin percentage is mainly due to increase in the cost of packaging materials from the shift to higher percentage of revenue in packaged beers compared with draft beers, increased in labour cost due to salary increase and bonus, higher depreciation cost from new equipment, and production loss from the research and development of new brew flavours.
• Selling, general and administration expenses for the first quarter of fiscal 2015 were at $1,048,671, up $53,593 or 5 per cent compared with $995,078 for the first quarter of fiscal 2014.
• The company had a net loss and comprehensive loss of $131,022 for the period ended Sept. 30, 2014, compared with net income and comprehensive income of $93,734 for the period ended Sept. 30, 2013.