BIG ROCK BREWERY INC. ANNOUNCES FIRST QUARTER 2025 RESULTS AND 51% INCREASE IN SALES VOLUMES
CALGARY, AB , May 14, 2025 /CNW/ - Big Rock Brewery Inc. (TSX: BR) (" Big Rock" or the " Corporation") today announces its financial results for the three months ended March 31, 2025 .
Financial Summary
For the three months ended March 31, 2025 , compared to the three months ended March 31, 2024 , the Corporation reported:
total sales volumes up 51.2% to 68,344 hl compared to 45,204 hl, driven by contract sales volumes that more than doubled and consistent wholesale volumes;
net revenue increased by 30.5% to $11.2 million from $8.6 million because of increased co-packing sales volumes;
gross margin increased to 33.1% compared to 20.2%;
operating income increased to $0.1 million , compared to an operating loss of $(2.3) million ;
net loss decreased by $(3.1) million to $nil; and
Adjusted EBITDA increased by $2.2 million to $0.7 million . Adjusted EBITDA is a non-GAAP financial measure, see " Non-GAAP Measures".
Summary of Results
$000, except hl and per share amounts
Three months ended
March 31
2025
2024
Sales volumes - wholesale (hl)
31,892
32,352
Sales volumes – contract (hl)
36,452
12,852
Total sales volumes (hl)
68,344
45,204
Gross product revenue
$ 14,203
$ 11,288
Net revenue
11,200
8,582
Cost of sales
7,491
6,845
Adjusted EBITDA (1)
688
(1,473)
Operating income (loss)
100
(2,299)
Net loss
(49)
(3,073)
Net loss per share amount (basic & diluted)
$ (0.00)
$ (0.44)
(1)
Non-GAAP measure. See " Non-GAAP Measures".
Sales volumes increased by 51.2% compared the first quarter of 2024 and a 9.2% increase compared to the fourth quarter of 2024. More importantly, our adjusted EBITDA was a positive $0.7 million , which represents a $2.2 million improvement from the first quarter loss of $1.5 million incurred in 2024.
"In these times of uncertainty and significant economic headwinds I am thrilled to announce our first quarter 2025 results. These improvements are the result of the implementation of our strategy that we outlined in 2024. Growth of contract sales volumes allows the Corporation to flatten the historically seasonal production and sales curve which not only improves operational efficiencies but improves profitability as a significant portion of the Corporations costs are fixed. The management team is also working to mitigate the impact of the recently announced changes to the Alberta Markup Share and ongoing turmoil with global tariffs ". said Mr. Kinder
Additional Information
The unaudited condensed interim consolidated financial statements of the Corporation and the Corporation's Management Discussion & Analysis for the quarter ended March 31, 2025 dated May 13, 2025 , can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR+ at www.sedarplus.ca under Big Rock Brewery Inc.
Big Rock is also pleased to announce that the Annual Meeting of Big Rock shareholders is expected to be held on May 14, 2025 at 2:00 p.m. (Mountain Standard Time) . Further details of the Annual Meeting will follow in due course.
NON-GAAP MEASURES
The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles (" GAAP"). Such financial measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers.
This press release contains the term "Adjusted EBITDA". Adjusted EBITDA is a non-GAAP financial measure that the Corporation uses to measure operating performance and borrowing capacity. The calculation of Adjusted EBITDA is a non-GAAP financial measure, whose nearest GAAP measure is net income, or net loss, as applicable, with the reconciliation between the two as follows:
(1)
Non-GAAP measure. See " Non-GAAP Measures".
Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely", "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.
This press release contains forward-looking statements pertaining to the following:
Big Rock's long-term growth strategy and the anticipated benefits to be derived therefrom;
Big Rock strategy of balancing production and sales between quarters to allow for a reduction of operating costs;
Big Rock's expectations that management will continue to work with co-packing partners for the purpose of introducing volumes and its expectation of success in achieving its objectives by year end and that execution of such strategy will supports the long-term vision to become Canada's largest and most stable independent brewer;
Big Rock's expectation that it will continue to focus on product innovation and development in the premium alcoholic and non-alcoholic beverage categories to better align with consumer demand;
Big Rock's expectations regarding the non-alcoholic market and its growth, including the performance of its non-alcoholic beer;
Big Rock's expectations with respect to product innovation releases in 2025;
Big Rock's expectations regarding the introduction of new Board members and the anticipated benefits therefrom;
Big Rock's expectation that it will continue to work with prospective co-packing partners to improve contract volumes and put in place arrangements that will allow it to both achieve its 2025 budget;
interpretation of and anticipation of market trends;
Big Rock's business plans, outlook, and strategy; and
the anticipated date and timing of Big Rock's Annual Meeting of shareholders and Big Rock's expectation that further details in connection therewith will follow in due course.
With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things:
volumes in the current fiscal year will remain constant or will increase;
there will be no material change to the regulatory environment in which Big Rock operates;
there will be no material supply issues with Big Rock's vendors;
seasonal fluctuations in demand;
balancing production and sales between quarters to allow for a reduction of operating costs;
management's work with co-packers will result in increased volumes and that this will lead to success in achieving its objectives by year end;
Big Rock's focus on innovation will result in the introduction of new products that will be received well by the market, aligned with market demand;
the new Board members will be elected at the Annual Meeting of Big Rock shareholders;
increased co-packing volumes, when achieved, will allow Big Rock to achieve its 2025 budget;
Big Rock can and will execute it business plans and strategies; and
that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses will help to improve financial results and improve the health of the Corporation's balance sheet.
Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include the risk factors set out in the Corporation's annual information form for the year ended December 30, 2024 which is available on SEDAR+ at www.sedarplus.ca and also include, but are not limited to:
risks related to Big Rock's credit facility with ATB;
the inability to grow demand for Big Rock's products;
the inability to execute its product innovation strategy and to introduce such products in the volumes necessary to fulfil its expectations;
the risk that Big Rock may not have an increase in market demand or market share;
the risk that Big Rock may not realize increased co-packing contract volumes or the anticipated benefits of increased co-packing production;
the risk that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses, won't help the Corporation continue to improve its financial results and strengthen its balance sheet;
the risk that Big Rock may not realize operational efficiencies or margin growth;
the risk that the prospective Board Members are not elected at the Annual Meeting;
the risk that Big Rock may not have sufficient cash flows to cover forecasted expenses or return to profitability; and
the risk that Big Rock may not be in compliance with its financial covenants for the next 12 months.
Any financial outlook or future oriented financial information (in each case " FOFI") contained in this press release regarding prospective financial position, including, but not limited to: expectations regarding continued improvement in Big Rock's financial results and the anticipated benefits to be derived therefrom and Big Rock's long-term growth strategy and the anticipated benefits to be derived therefrom are based on reasonable assumptions about future events, including those described above, based on an assessment by management of the relevant information that is currently available. The actual results will likely vary from the amounts set forth herein and such variations may be material. Readers are cautioned that any such FOFI contained herein should not be used for purposes other than those for which it is disclosed herein. Such information was made as of the date of this press release and the Corporation disclaims any intention or obligation to update or revise any such information, whether as a result of new information, future events, or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements and FOFI contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements and FOFI included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
About Big Rock Brewery Inc.
In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta , Vancouver, British Columbia , and Toronto, Ontario . Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit www.bigrockbeer.com
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