Big Rock Brewery (BR) Q1 2023 earnings summary

Executive summary

• Q1 2023 performance improved substantially YoY, with positive Adjusted EBITDA and narrowed operating and net losses; management said business changes were beginning to return operations to profitability.

Financial highlights

• Net revenue rose 18.9% to $10.451M from $8.787M; gross revenue increased to $13.639M from $12.712M.

• Operating loss narrowed to $144K from $1.488M; net loss narrowed to $255K from $1.271M.

• Adjusted EBITDA improved to positive $522K from a loss of $620K; the $1.142M change was a non-GAAP measure.

• Basic and diluted loss per share improved to $0.04 from $0.18.

Outlook and guidance

• Management intends to build on Q1 momentum through FY2023; no specific financial targets were stated.

• Group purchasing, fixed-price raw-material and utility contracts, Calgary equipment upgrades, expanded capacity and pasteurization are expected to support cost control, efficiency and co-packing growth.