Craft Brew Alliance, Inc. Reports Preliminary Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the Year 2014
For the full year 2013, the company announced net sales growth of 6%, reflecting the continued strength of the Kona Brewing, Redhook Brewery and Omission brands, as well as continued repositioning of the Widmer Brothers brand. EPS was $0.10 versus 2012 EPS of $0.13. Capital expenditures were approximately $8.8 million, reflecting continued investments in capacity, pubs, efficiency and quality initiatives.
For the full year 2014, the company expects growth in contract brewing revenue of 25% to 50% as a result of new partnerships, gross margin rate of 28.5% to 30.5%. As the company continue to optimize brewing locations and improve capacity utilization and efficiency, The company expects gross margin rate to expand 500-700 basis points over the next five years. The company expects capital expenditures of approximately $15 million to $20 million, continuing investments in capacity and efficiency improvements, quality initiatives and restaurant and retail.