Commonwealth Brewery Ltd. (CBL) is crediting the sharp boost in tourist arrivals and lower unemployment to a nearly 64 percent increase in net revenue and $3.24 million in net profits during the second quarter of its financial year.
Overall, CBL realized comprehensive income of $4,164,197 for the first six months in 2021 which included second-quarter net profits of $3,248,355 and a revaluation gain of $1,200,000 from one its main properties on Grand Bahama.
During the same period last year CBL suffered net loss of $3,005,477 as COVID-19 restrictions closed the country’s borders and brought economic activity to a standstill.
“CBL experienced a dramatic increase in net revenue during the second quarter – up 63.7 percent when compared to the second quarter of 2020. This increase was expected as the country continues its slow return to normalcy inclusive of the ease of government levied restriction, the reduction in unemployment and a sharp boost in tourist arrivals,” the company’s management said in its unaudited Q2 financials.
“This is in stark contrast to the same period last year during which the country was in the middle of the economic downturn due to the COVID-19 pandemic, in particular the halt of tourism and the cessation by government of alcoholic sales.”
While revenue was up for the three months ending June 30 – to $27,063,364 from the $16,526,527 recorded during the same period in 2020 – CBL said increased prices of raw materials and utility costs as the company sought to meet demand, resulting in a 20.9 percent increase in operating expenses which totaled $4 million during Q2.
“The uptick in expenses during the period was due to increase in the cost of raw materials, consumables and services. These were inclusive of an increase in production and utility costs as we ramped up business to meet consumer demand during this period as opposed to last year when our business came to a halt due to the restrictions imposed to curb the spread of COVID-19,” the company said.
“However, it must be noted that there was only a marginal increase of 0.1 percent in costs for the first half of 2021 over the comparative period in 2020, illustrating that our cost-mitigating strategies have been effective.”
CBL said management will continue to adjust its business strategies as the company pushes to restore operating results to pre-COVID-19 levels.