The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Kalik’s manufacturer has continued to warn that product shortages and price hikes are “inevitable” due to continued supply chain disruptions post-COVID despite generating $1.3min profits for the 2022 first quarter.

Commonwealth Brewery, the vertically integrated BISX-listed brewer, wholesaler and retailer, said year-over-year comparisons continued to benefit from being up against the prior year’s COVID restrictions as top-line growth continued to match that enjoyed in the 2021 full-year.

“Commonwealth Brewery continued to experience strong growth in net revenue during the period ending March 31, 2022, of plus-20 percent when compared to the same period of 2021. Key drivers for the continued growth were a further easing of COVID-19 related restrictions and continued economic recovery, led by a rebound of the tourism and hotel sector,” the company added in a statement.

“Operating expenses increased to $24m for the period, up 14 percent, which is driven by increased sales and increased supply costs. There were continuous disruptions to the global supply chain that lead to higher input costs for the company.

“Commonwealth Brewery continues to show profitability with net profit of $1.3m in comparison to the net loss of $0.3m for the comparative period of 2021,”the statement added. “Commonwealth Brewery remains cautiously optimistic as local COVID economic recovery progresses.

“Management is also closely monitoring its business strategies and taking additional measures to limit the impact of the global supply chain. Still, price increases and out-of-stocks will be inevitable. Commonwealth Brewery will continue to invest in its brands, technology, people and the community as part of its long-term strategy.”

The BISX-listed brewer’s revenues leapt by almost $5m during the 2022 first quarter, rising from $24.244m the year-before to $29.029m. Operating expenses increased by almost $3m, jumping to $24.49m compared to $21.521m. This followed a 2021 full-year in which revenues rose by 22 percent year-over-year.

“Notwithstanding the global challenges and mass uncertainty surrounding the health pandemic, I am very pleased with our team’s performance and overall accomplishments,” said managing director, Jürgen Mulder. “Our employees across 13 islands successfully adapted to the needs of our partners and consumers, driving innovation and delivering exceptional customer experiences. Our overall performance is evident in their ability to embrace change and tackle challenges beyond our control.”