The global beer market has continued to demonstrate solid growth to kick off this decade. Fortune Business Insights recently projected that the market would grow from $768 billion in 2021 to $998 billion in 2028. That would represent a CAGR of 3.6%.
Waterloo Brewing (TSX:WBR) is a Kitchener-based company that is engaged in the production, distribution, and sale of alcohol-based products, particularly beer. Shares of Waterloo Brewing were down 3.3% in late afternoon trading on April 5. The stock has plunged 23% in the year-to-date period.
Investors can expect to see its fourth quarter and full year 2021 results in the days ahead. It released its third quarter 2021 earnings on December 9. Waterloo Brewing reported net revenue of $26.9 million in Q3 2021 – up 17% from the previous year. Meanwhile, revenue in the year-to-date period increased 34% to $83.6 million. Moreover, total EBITDA climbed 30% to $15.6 million.
Waterloo’s owner brand products managed to outperform the industry volume average in the year-to-date period. However, it is facing inflationary cost pressures as well as complications due to the ongoing supply chain issues. Rising interest rates may provide some relief for these costs going forward. In any case, Waterloo Brewing will have to make up the difference with product price hikes.
Shares of this beer stock last had an RSI of 14. That puts Waterloo Brewing well into technically oversold territory at the time of this writing. Investors should look to snatch up this stock on the dip in early April.
