Gage Roads Brewing Co expects to return to profitability for the financial year ended June 30, thanks to the growth of its proprietary brand.

The company said the improvement in earnings resulted from the continued growth of its own range, which now represents 25 per cent of its sales compared to 14 per cent in FY15.

Gage Roads expects net profit after tax for the full year to be around $600,000 (unaudited), up $1.4 million on last year, when it recorded an $800,000 loss.

“The higher concentration of proprietary brands in the sales mix has driven an improvement in revenue to $25.5 million (up five per cent) and gross profit margin to 52 per cent (up from 51 per cent in FY15),” the company said.

“Gains in operating efficiencies and a reduced cost structure (which were an operational focus during the year) also contributed to the positive result.”

Sales made from the contract brewing division, Australian Quality Beverages (AQB), declined by 13 per cent over the prior year.

“During the last quarter the company worked with its customers to introduce new brands, which softened the full-year decline in volumes and improved the position compared to the previous half-year and quarterly updates,” Gage Roads said.

“Growth in the company’s proprietary craft range offset the decline in contract-brewed volumes during the year, with the overall effect being an improvement in the company’s profitability.”

Total sales volumes across all divisions were 1.4 million carton equivalents (11 million litres), which was in line with last year’s volumes.

Meanwhile, the company’s AIBA Champion Australian Beer, Little Dove, won a Gold Medal in the Pale Ale category at the Australian Craft Beer Awards overnight.

“The company is expecting to release Little Dove in package in Q1 FY17 in time for the upcoming summer period,” Gage Roads said.