Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

November 29, 2013 08:30 ET

Russell Breweries Inc. Announces Results for Q1 Fiscal 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 29, 2013) - Russell Breweries Inc. (TSX VENTURE:RB), a producer of premium craft beer, releases its financial results for the first quarter of Fiscal 2014, ended September 30, 2013.

We are pleased with the continuing improvement of the Company over Q1 of 2014 fiscal year, says Mr. Benjamin Li Yu, CEO. Our gross margins have improved and we have continued to grow in a highly competitive market. The Company is $239,195 EBITDA positive for Q1 of fiscal 2014 compared to EBITDA of $147,647 for Q1 of fiscal 2013.

Q1 Fiscal 2014 Highlights

Russell Breweries Inc. generated $2,477,287 gross revenue for Q1 2014F, up $152,205 or 7% compared to $2,325,082 for the three months ended September 30, 2012 (Q1 2013F). Net revenue for Q1 2014F were $1,940,470 up $133,681 or 7% compared to $1,806,789 for Q1 2013F.

The gross margin for Q1 2014F increased $236,585 or 26% to $1,158,529 compared to $921,944 for Q1 2013F. The gross margin percentage of Q1 2014F was up 9% to 60% compared to 51% for Q1 2013F.

Selling, general and administration expenses for Q1 2014F were $995,078 up $140,237 or 16% compared to $854,841 for Q1 2013F. Other expenses for Q1 2014F reduced by $50,922 to $44,231 compared to $95,153 for Q1 2013F.

The Company had a net income of $93,734 for Q1 2014F compared to the net loss of $63,408 for the period ended September 30, 2012 ("Q1 2013F"). The increase in net income is primarily due to an increase in gross margin of $236,585, which is offset by an increase in selling, general and administrative expenses of $140,237 and decrease in other expenses of $50,922.

For further details the Company's complete MD&A and financial statements for the three months ended September 30, 2013 and 2012 are available on SEDAR at www.sedar.com and the Company's web site at www.russellbeer.com.

Russell Breweries Inc. produces premium beers in Western Canada in breweries located in BC and Manitoba. All products are held to the highest quality standards, brewed without any preservatives, ensuring that the passion that goes into crafting the beers comes through in the taste. Russell Breweries Inc. is a public company trading on the TSX Venture Exchange under the symbol "RB".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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