By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

RISING logistics, freight, duties and other import-related costs continued to squeeze Commonwealth Brewery during the first half of 2026, but the company still managed to increase net profit by 5.1 percent to $6.27m.

The company, in its unaudited interim financial statements for the six months ended June 30, reported net profit of $6.27m, up from $5.97m during the same period last year.

Net revenue increased 3.9 percent to $65.7m, compared with $63.3m in the first half of 2025, supported by sustained demand across the portfolio, particularly beer and spirits, as well as continued strength in the tourism and hospitality sectors.

Operating profit rose 5.5 percent to $6.79m from $6.43m last year.

However, operating expenses increased 3.4 percent to $59.4m, with raw materials, consumables and services accounting for $45.8m, up from $43.6m in the first half of 2025.

The company said the increase reflected portfolio mix changes, higher import-related costs associated with strong spirits sales and inflationary pressures affecting logistics, duties, freight and other supply-chain inputs.

Those pressures were partly offset by cost controls and lower depreciation, helping the company deliver higher operating and net profit.

Commonwealth Brewery also reported a particularly strong second quarter, with net profit rising to $4.85m from $3.71m in the three months ended June 30, an increase of about 31 percent.

Second-quarter net revenue rose to $35.1m from $33.7m.

The company said sustained demand across its portfolio, particularly beer and spirits, supported the first-half performance, while continued strength in tourism and hospitality also contributed to revenue growth.

Despite the higher costs, Commonwealth Brewery's financial position strengthened during the six months.

Total assets increased to $114m at June 30, up from $111.7m at December 31, 2025, while cash and cash equivalents rose to $9.4m from $7.6m.

Total liabilities fell to $20m from $23.9m at year-end, largely reflecting lower lease liabilities.

Shareholders' equity increased to $94m from $87.7m.

The company generated $6.36m in net cash from operating activities during the first half, although this was down from $9.08m during the comparable period last year.

Commonwealth Brewery invested $2.08m in property, plant and equipment during the period, compared with $527,000 in the first six months of 2025.

Management said it remains “cautiously optimistic” about the remainder of 2026, while acknowledging that inflationary and supply-chain pressures will continue to be monitored.

The company said it expects to benefit from sustained consumer demand, growth in the hospitality sector and ongoing cost-management initiatives.

It said those factors leave the business well positioned to execute its strategic priorities and deliver shareholder value.