Big Rock Brewery (BR) Q3 2023 earnings summary

Executive summary

• Q3 operating income improved to $55k from a $1.146m loss YoY; net loss narrowed to $228k from $1.054m.

• 9M operating loss narrowed to $46k from $3.104m; net loss fell 73% to $822k from $2.913m.

• Adjusted EBITDA improved by $2.793m in 9M to $2.889m, supported by cost-saving initiatives and operating improvements.

Financial highlights

• Q3 net revenue was $11.553m, down 3% YoY; 9M revenue was $34.706m, down 5%.

• Q3 Adjusted EBITDA was $999k vs. $102k; 9M Adjusted EBITDA was $2.889m vs. $96k.

• Q3 sales volume, excluding co-packing, was 44,451 hl, down 6% YoY; 9M volume was 121,889 hl, down 1%.

• Q3 basic and diluted loss per share was $0.03 vs. $0.15; 9M loss per share was $0.11 vs. $0.42.

• Net working capital improved $3.3m YoY as of Q3, a capital management measure.

Outlook and guidance

• Long-term priorities: improve capacity utilization and productivity, reduce operating costs, grow volume, and premiumize the branded portfolio.

• Production and sales balancing across quarters is intended to reduce operating costs; innovation and partner co-creation aim to grow demand and market share.

• Continued innovation and improvement in financial results are expected; Pacer, a non-alcoholic beverage launched in early Q4, had initial results beyond expectations.