The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A general election boost and product innovation drove a ten per cent profit increase for Commonwealth Brewery last year to $18.8m.

Unveiling its results for the 12 months to end-2017, the Kalik and Heineken brewer enjoyed a 13 per cent year-over-year revenue boost to $133.1m, compared to $117.8m in 2016.

The vertically-integrated, BISX-listed company said the top-line was "driven by positive volume growth, largely in the first half of the year, given timing of the general election, and also due to the benefit of pricing and favourable mix from spirits".

It added: "Kalik performed particularly well during the period. Commonwealth Brewery continued to focus on innovation, with a number of new products launched in 2017. Innovations included the launch of Kalik Radler Cranberry, Kalik Radler Pina Colada, Kalik Gold and Kalik Light Platinum 12 ounce cans. Eclipse beer 16 ounce cans were also introduced."

Revenue growth filtered down the income statement, as income from operating activities jumped ten per cent to $18.9 million. Basic and diluted earnings per share (EP) stood at $0.62, compared to $0.57 in 2016.

Hans Neven, who will step down from his position as Commonwealth Brewery's managing director on June 30, said in a statement: "Despite volatile economic conditions and continued pressure on consumer spending, we delivered strong performance in 2017 demonstrating successful execution of our strategy and the benefit of the diversity of our extensive portfolio complimented by further innovations."

Commonwealth Brewery also received a total settlement of $11.9m as a result of its Hurricane Matthew insurance claim, with $7.3m recognised in the 2017 financial statements.

The company also revalued its land and buildings on November 24, 2017, resulting in a surplus of $5.4m. Commonwealth Brewery said it does not intend to make any distribution from the properties revaluation reserve, and these items are not reclassified to profit or loss.

Looking ahead to 2018, the company said: "Management expects a continued volatile economy, with consumer spending constrained. Nonetheless, management is confident that there is a clear strategy to deliver sustainable shareholder value."