https://thewest.com.au/business/retail/gage-roads-brewing-soars-on-craft-brands-growth-ng-b88907378z
Gage Roads Brewing soars on craft brands growth
Peter WilliamsThe West Australian
Wednesday, 25 July 2018 1:46PM
Shares in Gage Roads Brewing have surged after flagging a lift in underlying earnings on the back of strong sales growth for its craft beer brands, thanks partly to its Optus Stadium supply deal.
While unaudited earnings before interest, tax, depreciation and amortisation for fiscal 2018 of $4.5 million were little changed from the year before, the brewer said they were up 28 per cent excluding one-off items.
Sales by volume increased 20 per cent to 12.8 million litres and by revenue 25 per cent to $53 million.
The company’s shares closed up 2¢, or 18 per cent, to 13¢.
Gage Roads said sales of proprietary brands like Single Fin Summer Ale and Alby had increased by 47 per cent to 5 million litres.
Of that figure, about 800,000 litres were sold at the stadium since it opened in January and at other marketing events.
“The Optus Stadium deal and the other parts of our “brand-in-hand” strategy are delivering great results and I am really excited about the prospects for our brands,” managing director John Hoedemaker said.
The remainder of total volume is made up by contract brewing for which Woolworths is the biggest customer.
The own brands portion of total sales increased to 39 per cent from 32 per cent the year before.
“Awareness for our brands has grown significantly and we look to build on that even further,” Mr Hoedemaker said.
