BIG ROCK BREWERY INC. ANNOUNCES THIRD QUARTER 2024 RESULTS
CALGARY, AB, Nov. 8, 2024 /CNW/ - Big Rock Brewery Inc. (TSX:BR) ("Big Rock" or the "Corporation") today announces its financial results for the three and nine-month periods ended September 30, 2024.
Financial Summary
For the three months ended September 30, 2024, compared to the three months ended September 30, 2023, the Corporation reported:
net revenue increased by 10.6% to $12.8 million primarily due to increased co-packing activity;
wholesale sales volumes went down 6.2% to 41,705 hectolitres ("hl") compared to 44,451 hl;
operating loss increased to ($0.3 million) from operating income of less than $0.1 million;
net loss increased to ($0.9 million) from a net loss of ($0.2 million); and
Adjusted EBITDA decreased to $0.3 million from $1.0 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures".
For the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, the Corporation reported:
net revenue decreased by 2.9% to $33.7 million from $34.7 million due to reduced co-packing activity in the first half of the year, as well as slightly lower wholesale volumes. The decrease was partially offset by the increased co-packing activity in Q3 2024;
wholesale sales volumes down 6.0% to 114,575 hl compared to 121,889 hl;
operating loss increased to ($3.3 million) from ($0.1 million);
net loss increased to ($3.8 million) from ($0.8 million); and
Adjusted EBITDA decreased to ($1.2 million) from $2.9 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures".
David Kinder, Big Rock's President and Chief Executive Officer noted, "While industry-wide challenges persist, impacting our wholesale volume growth, we're excited to share some positive momentum at Big Rock Brewery. In Q3 2024, we successfully introduced a new multi-year co-packing arrangement and expanded our co-pack volumes with our partners, contributing to growth in our gross margin over the same period last year. Big Rock continues to grow both capacity and capability within the ready-to-drink ("RTD") category, prioritizing additional facility investment that supports both ongoing and future demand, allowing us to scale up and to win in this critical space."
Mr. Kinder commented further, "Despite the headwinds in the beer industry overall, we remain firmly committed to investing in our brands, our people, and our innovation pipeline. By strengthening our team and building on our reputation for quality and creativity, we are positioning Big Rock to respond and to thrive in an evolving market and to meet the changing tastes of our customers with renewed passion and purpose. While these strategic investments increased our operating costs this quarter, negatively impacting our EBITDA and earnings, we believe they are crucial steps toward creating sustainable, long-term growth and value for our stakeholders."
Summary of Results
$000, except hl and per share amounts
Three months ended
September 30
Nine months ended
September 30
2024
2023
2024
2023
Wholesale sales volumes (hl) (1)
41,705
44,451
114,575
121,889
Gross product revenue
$ 17,061
$ 15,999
$ 44,141
$ 46,656
Net revenue
12,774
11,553
33,700
34,706
Cost of sales
8,864
8,098
23,927
24,490
Adjusted EBITDA (2)
281
999
(1,162)
2,889
Operating (loss) income
(347)
55
(3,313)
(46)
Net loss
(938)
(227)
(3,791)
(822)
Net loss per share (basic)
$ (0.13)
$ (0.03)
$ (0.54)
$ (0.11)
Net loss per share (diluted)
$ (0.13)
$ (0.03)
$ (0.51)
$ (0.11)
(1)
Excludes co-packing/contract volumes due to the nature of the agreements.
