Big Rock Brewery (BR) Q4 2023 earnings summary

Executive summary

• FY 2023 Adjusted EBITDA was $2.2 million versus $(3.4) million; net loss narrowed to $2.9 million from $7.1 million, despite net revenue declining 7% to $43.7 million.

• Q4 Adjusted EBITDA loss improved to $(0.7) million from $(3.5) million, while net loss narrowed to $2.1 million from $4.2 million.

Financial highlights

• Q4 net revenue fell 15% YoY to $9.0 million from $10.5 million; gross revenue was $11.8 million versus $13.5 million.

• FY net revenue declined 7% to $43.7 million from $47.1 million; cost of sales decreased to $30.7 million from $36.6 million.

• Q4 operating loss narrowed to $1.5 million from $3.8 million; FY operating loss narrowed to $1.6 million from $6.9 million.

• Q4 Adjusted EBITDA improved by $2.8 million YoY to $(0.7) million; FY improved by $5.6 million to $2.2 million.

• Wholesale volumes fell 1% YoY in Q4 to 35,314 hl and 1% for FY to 157,203 hl; volumes exclude contract manufacturing.

Outlook and guidance

• Management expects continued financial improvement and a stronger balance sheet through production streamlining and better returns on sales and marketing across branded, white-label and co-packing businesses.

• Planning assumptions include current-year volumes remaining flat or increasing, no material vendor supply issues or regulatory change, and continued seasonal demand fluctuations.

• Forward-looking expectations are subject to material variation and are based on management assumptions; actual results may differ materially.