By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A BISX-listed brewery said its near three percent revenue decline is due to “demand slowdown” in the tourism sector.

Commonwealth Brewery, in its third quarter and nine-month results for the period to end September 2024, said they experienced a 4.8 percent revenue decline in the third quarter, resulting in a year-to-date revenue impact of -2.9 percent from 2023.

Kalik’s manufacturer said the decline was due to a “demand slowdown” in the hotel tourism industry after last year’s record-breaking numbers.

“Through the third quarter of 2024, Commonwealth Brewery Ltd (CBL) experienced a revenue decline of 4.8 percent compared to the same period last year, thus resulting in a year-to-date revenue impact of -2.9 percent compared to 2023,” said the CBL unaudited financial statement.

“This quarter decline was primarily driven by an observed demand slowdown in the hotel tourism sector versus last year, which would be characterized as a return to previous pre-covid levels from a peak experienced in 2023.”

Commonwealth Brewery’s financial statements showed that top-line gross revenues fell by more than $1.2m year-over-year for the 2024 third quarter, declining from $34.196m to $32.457m. For the nine-months, they fell by more than $2.8m dropping to $99.196m from $102.073m.

As a result, even though total operating expenses declined slightly year-over-year, the company’s third quarter and nine months total profits fell by 29.7 percent and 12.1 percent, respectively, to $1.607m and $7.698m. The former figure represented a more than $1.06m decline compared to the 2023 third quarter, while the latter was a $678,520 drop.

Commonwealth Brewery said it is engaging in “competitive pricing” and has implemented a “cost savings agenda” to offset the decline but maintained that they continue to generate positive cash flow of $13m during the first nine months.

“To address this contraction, CBL has taken steps to support its consumers and customers through competitive pricing and implemented a cost savings agenda including an increased focus on product management and our commercial and fixed cost base,” said the unaudited financial statement.

“This strategy resulted in operating expense improvements of 3.5 percent for the quarter and 2.0 percent year-to-date. CBL continues to generate positive cash flow from operations, totalling $13 m during the first nine months of the year.

“Overall, our financial performance for the nine months ended September 30, 2024, reflects our ability to adapt to market conditions and maintain profitability through effective cost management and strategic product focus.”