Craft Brew Alliance, Inc. reported preliminary earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company announced an increase in net sales and branded beer shipments of 5.4% and 6.1%, respectively, in the fourth quarter and diluted earnings per share of $0.04 for the quarter versus 2012 EPS of $0.01 primarily as a result of an increase in gross profit and decreases in SG&A.

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.