E-Malt.com News article: Canada: Lakeport Brewing ups monthly distribution

Lakeport Brewing Income Fund said August 03 it has raised its monthly cash distributions by 18 percent to 13 Canadian cents per trust unit, Reuters communicated August 04.

The raised distribution will be payable on September 15 to unitholders of record on August 31, the company said.

The Hamilton, Ontario-based brewer said it earned CA$3.2 million (US$2.8 million), or 56 Canadian cents a unit, in the quarter to June 30. Lakeport did not become a publicly traded company until June 21, 2005.

EBITDA (earnings before non-controlling interest, interest, taxes, depreciation, and amortization expense) was CA$4.9 million, up 17 percent from CA$4.2 million in the same period last year.

The company said gross sales rose 21 percent to CA$43.5 million for the 2006 second quarter from CA$36.1 million for the same period last year.

Lakeport said profits were boosted by sales of its three leading proprietary brands, Lakeport Honey Lager, Lakeport Pilsner and Lakeport Light, which increased by a combined 29 percent.

"Our marketing initiatives in the latter part of 2005 and first part of this year are all helping to drive our growth, including the launch of our leading brands in cans, our new packaging design, and expansion into new sales channels," said Teresa Cascioli, chairwoman and chief executive, in a statement.

Lakeport said selling, general and administrative expenses rose 16.7 percent to C$2.8 million, citing the costs of becoming a public company.

The company said energy conservation programs helped offset cost increases. Lakeport also said it has appointed a new chief financial executive, Karen Trudell, who had been working in the position on a temporary basis since mid May. The company said she was key in helping Lakeport prepare for its initial public offering last year.

Shares of Lakeport were up 80 Canadian cents, or 4.8 percent, at CA$17.50 on the Toronto Stock Exchange at midday August 03.

(US$1=CA$1.13)


04 August, 2006