Big Rock Brewery (BR) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 10.6% YoY to $12.8 million, led by co-packing, while wholesale volume fell 6.2% and net loss widened to $0.9 million.

• For 9M, revenue declined 2.9% to $33.7 million; net loss widened to $3.8 million and Adjusted EBITDA fell to a loss of $1.2 million.

• A new three-year co-packing contract and investments in RTD capability, brands, and innovation underpin the growth strategy.

Financial highlights

• Q3 net revenue was $12.774 million versus $11.553 million; gross product revenue was $17.061 million versus $15.999 million.

• Q3 operating loss was $0.347 million versus operating income of $0.055 million; net loss was $0.938 million versus $0.227 million.

• Q3 Adjusted EBITDA was $0.281 million versus $0.999 million; 9M Adjusted EBITDA was a loss of $1.162 million versus income of $2.889 million.

• 9M net revenue was $33.700 million versus $34.706 million; operating loss was $3.313 million versus $0.046 million, and net loss was $3.791 million versus $0.822 million.

• Wholesale volume declined 6.2% to 41,705 hl in Q3 and 6.0% to 114,575 hl in 9M; figures exclude co-packing/contract volumes.

Outlook and guidance

• New three-year strategic-partner contract targets production of 50,000 hl or more annually, expected to balance production schedules and replace volumes lost after a key contract expired in 2023.

• Management assumes 2025 co-packing volumes will return to or exceed 2022 levels and that current-year volumes will remain constant or increase.

• RTD capacity expansion, packaging equipment, product innovation, and co-creation are intended to support demand, efficiency, and future growth.