Chambly, November 17, 2003 – For the third quarter ended September 30, 2003, Unibroue posted sales of $6,842,901, compared to $6,070,758, an increase of 12.7% over the same period last year. Net earnings grew by an impressive 75.2 %, from $186,138 to $326,112.

Cumulative sales for the first nine months of 2003, were $18,540 051 compared to $17,005,455 in 2002, an increase of 9%. Furthermore, during this period, Unibroue generated net earnings of $868,941 compared to $645,468 in 2002, an increase of 34.6%. Earnings per share were 0.15$ compared to earnings per share of 0.11$ reported in the first nine months of fiscal year 2002.

In accordance with terms and conditions specified in current legislation, Unibroue is pursuing its share repurchase program. The company bought back 153,390 outstanding shares over the first nine months of 2003.

Effervescent sales
At the close of the third quarter of 2003 sales volume was up 2% in Quebec, 21% in the rest of Canada, 15% in Europe and 44% in the United States.

Unibroue is enjoying outstanding performance in the United States. The company is active in more than 32 States. Ten of these contribute more than 60% of the total sales in this market. Volume outside Quebec accounts for 25% of the total sales recorded by Unibroue and generates almost 100% of its growth – notably in the United States.

“The U.S. market offers a fabulous potential for growth. Moreover, the American regulatory environment presents considerable business stimulus for its brewers, most notably in the fiscal area. For Unibroue, the United States represents a promising avenue for expansion”, says André Dion, Unibroue’s CEO.

In Canada, sales are dominated by Ontario with 60% of the volume, followed by British Columbia with 29% of sales and 32% in growth.

Despite the powerful control exercised by the major Canadian breweries on point-of-sales, Unibroue’s growth in the Quebec market compares favourably with results obtained in the industry where shipments decreased by 1.5% during the first three quarters.

Unibroue’s market segment of refermented beers, the category with the highest profit margin, increased from 63% of sales to 69% this year generating a 1,3 points increase on gross margin.

Unibroue’s earnings before interest charges, amortization and income taxes were $3,602,323, an increase of 26.3% over last year. As a direct result of continuous and rigorous cost controls and responsible management, variation on operating costs were a mere 4,4%, over the nine months period of 2002.

“ Unibroue received the highly coveted title of “ Brewery of the Year” at the Canadian Brewing Awards. This latest in a series of accolades that reinforced the reputation our products have throughout Canada”, explains Mr. Dion. “ We do not intend to sit on our laurels and our master-brewers are hard at work creating new products that will delight connoisseurs of fine beers. We are extremely proud of our results and we intend steer the course of product quality and efficient management to maintain our solid performance”, concluded Mr. Dion

Consolidated balance sheets (pdf format)
Consolidated earnings (pdf format)
Consolidated statements of cash flow (pdf format)

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Information: Sébastien Dion, CA
Chief Financial Officer, Unibroue
Tel: (450) 658-7658