Big Rock Brewery (BR) Q2 2023 earnings summary

Executive summary

• Q2 2023 sales volume, excluding co-packing, rose 3% YoY to 43,660 hl; net revenue fell to $12.7m from $15.8m.

• Adjusted EBITDA was $1.022m versus $645k in Q2 2022; H1 adjusted EBITDA improved to $1.544m from break-even.

Financial highlights

• Q2 gross revenue was $17.018m versus $20.324m YoY; net revenue was $12.702m versus $15.823m.

• Q2 operating income was $43k versus an operating loss of $469k; net loss narrowed to $340k from $588k.

• H1 net revenue declined 6% YoY to $23.153m; net loss narrowed to $595k from $1.859m.

• H1 sales volume, excluding co-packing, increased 3% YoY to 77,438 hl.

Outlook and guidance

• Long-term priorities include higher capacity utilization, productivity, lower operating costs, market-share gains, and premiumizing the branded portfolio.

• Product innovation, strategic-partner co-creation, and balancing production and sales between quarters are intended to support demand and reduce operating costs.

• Management aimed to at least match 2022 Q3 and Q4 co-packing volumes during the remaining two quarters of 2023.