The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

COMMONWEALTH Brewery overcame an inflation-driven $15.8m increase in total costs to yesterday unveil 66.7 percent year-over-year profit growth for 2022.

The Kalik manufacturer, disclosing its unaudited results for the 12 months to end-December, said its cost base expansion was more than offset by the $18m-plus growth in revenue that jumped from $116.789m in 2021 to $134.99m last year.

Aided by the 15.6 percent top-line increase, the vertically-integrated brewer, distributor and retailer saw net profit grow by two-thirds from $8.204m to $13.68m year-over-year after its business was aided by the economic reflation that followed the end to COVID lockdowns and restrictions.

Acknowledging the difficult trading conditions, as it grapples with a variety of cost increases impacting its raw material and production expenses, Commonwealth Brewery said: “Overall, Commonwealth Brewery realised comprehensive income of $13.7m for the full-year of 2022, which displays the sustained growth versus the total comprehensive income of $9.4m in 2021.

“Management will continue to closely monitor its business strategies as we navigate the ongoing market volatility whilst building for the future.” Total expenses for the full-year hit $111.262m compared to $95.458m in 2021, making for a 16.6 percent year-over-year increase.

As for the 2022 fourth quarter, Commonwealth Brewery saw its profits near-double from $3.281m to $6.013m - an 83.3 percent rise. Revenues rose by $6.5m for the three months to end-December 2022, while total operating expenses rose by 18.7 percent from $26.917m to $31.951m.

“Commonwealth Brewery continued to experience strong growth in net revenue during the period ending December 2022 (+19 percent) when compared to the same period of 2021,” the BISX-listed brewer said. “Key drivers for the continued growth were post-pandemic recovery through easing of restrictions and a rebound of the tourism sector.

“These factors delivered strong growth in all channels, with hotels and on-trade growth ahead of other channels. Revenue growth was delivered across most categories through [placing an emphasis on premium product] of the portfolio in primarily spirits, malts and beer.

“Operating expenses have increased to $111m for the period, which is primarily driven by increased production and logistics expenses, increased selling and marketing expenses, as well as increased payroll expenses. Certain of these increases were consistent with the result of post-pandemic activities,” the BISX-listed brewer continued.

“Commonwealth Brewery will continue to implement cost mitigation and other measures to mitigate any profit margin dilution. In the fourth quarter, Commonwealth Brewery continues to show profitability with net profit of $6m in comparison to the net profit of $3.3m for the comparative period of 2021.”