Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

November 30, 2010 09:53 ET

Russell Breweries Inc. Reports Positive EBITDA Results in Q1 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2010) - Russell Breweries Inc. (TSX VENTURE:RB), a producer of premium craft beer, today reported earnings before interest, taxes and amortization (EBITDA) of $105,868 for the first quarter fiscal 2011 (Q1 2011F) for the three month period ending September 30, 2010.

"Even though it continues to be challenging and very competitive in both our major markets of British Columbia and Manitoba, we have performed well and are on plan," says Brian Harris, CEO. "In addition to seeing solid sales increases in several of our core brands, we have successfully introduced Rocky Mountain Pilsner into the fast growing premium discount market. We have also generated considerable momentum in the BC marketplace with our award-winning Brewmaster Series which is a succession of limited edition special occasion beers available in 650ml bottles."

Net Sales for Q1 2011F were $1,587,699 down $246,261 or 13% compared to $1,833,960 for the three months ending September 30, 2009 (Q1 2010F). "This decrease is primarily a result of no longer supplying product to BC Place and the BC Lions under our three year sponsorship agreement signed in 2007 which is now completed," says Brian Harris.

The gross margin for Q1 2011F was down $125,822 or 12% to $895,267 compared to $1,021,109 for Q1 2010F. Overall gross margin percentage stayed at 56% compared to the same period a year ago.

Selling, general and administration expense for Q1 2011F decreased $63,995 or 7.5% to $789,419 compared to $853,414 for Q1 2010F. The decreases were, advertising and promotion decrease of $46,808 to $201,728 from $248,536, freight and administrative labour decrease of $25,730 to $202,699 from $228,429, and professional fees decrease of $21,778 to $27,943 from $49,721.

The company had a net loss of $84,838 for Q1 2011F or $0.00 per share compared to the net profit of $4,433 or $0.00 per share for the same quarter in 2010F.

For further details the Company's complete MD&A and financial statements for the three months ending September 30, 2010 and 2009 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 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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