BRC Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Financial Highlights

   -- 
 Net loss improved to $7.6 million in 2024, a $49.1 million improvement 
      compared to a $56.7 million net loss in 2023. Adjusted EBITDA was $39.3 
      million in 2024, an increase of $26.5 million from $12.8 million in 
      2023. 
 
 
   -- 
 Wholesale revenue grew 8.9% compared to 2023 while consolidated net 
      revenue decreased 1.0% in 2024 to $391.5 million. 
 
 
   -- 
 Black Rifle Energy$(TM)$ began shipping in late Q4, supported by national 
      distribution through our partnership with Keurig Dr Pepper $(KDP)$ for 
      FY25. 
 
 
   -- 
 Distribution of Black Rifle packaged coffee across food, drug, and mass 
      ("FDM") retailers increased by 11.5 percentage points in 2024, reaching 
      48.6% All Commodity Volume ("ACV"), while ready-to-drink coffee 
      distribution grew by 3.8 percentage points to 47.2% ACV. 
 
SALT LAKE CITY, Utah--(BUSINESS WIRE)--March 03, 2025-- 

BRC Inc. (NYSE: BRCC, the "Company"), a Veteran-founded, mission-driven premium beverage company, today announced financial results for the fourth quarter and fiscal year 2024.

"Black Rifle made significant progress in strengthening our operations, bolstering our market presence, and improving profitability over the past year," said BRCC Chief Executive Officer Chris Mondzelewski. "With expanded coffee distribution, the launch of Black Rifle Energy(TM), and our strategic partnerships with Keurig Dr Pepper (KDP), we have built a strong foundation for long-term growth. While there is still work to be done in 2025, I am confident in our ability to execute on our strategy and build momentum. Our commitment to serving veterans and first responders remains at the heart of our mission, and I'm proud of the lasting impact we've made in the communities we serve -- an impact that will continue to grow as we scale and expand our reach."

"In 2024, we generated substantial improvements across key financial metrics, including gross margin, adjusted EBITDA, net income, and free cash flow," said BRCC Chief Financial Officer Steve Kadenacy. "Our focus on operational excellence has set financial conditions to invest in the Black Rifle brand this year, and I am confident it will drive sustained growth across multiple product categories and channels. With coffee distribution expanding in food, drug, and mass retailers and Black Rifle Energy(TM) broadening our brand into new dayparts and consumption occasions, we see significant opportunities to accelerate growth and strengthen our presence in both the coffee and energy segments."

Fourth Quarter and Fiscal Year 2024 Financial Highlights (in millions, except % data)

 
                     Fourth Quarter Comparisons                           Annual Comparisons 
           ----------------------------------------------  ------------------------------------------------ 
            2024        2023        $ Change    % Change    2024        2023        $ Change    % Change 
            -----       -----      ----------  ----------   -----       -----      ----------  ---------- 
Net 
 Revenue   $105.9      $119.7       $  (13.8)   (12)%      $391.5      $395.6       $   (4.1)   (1)% 
Gross 
 Profit    $ 40.4      $ 31.7       $    8.7     27%       $161.2      $125.4       $   35.8    29% 
Gross 
 Margin      38.1%       26.5%                               41.2%       31.7% 
 
Net Loss   $ (6.7)     $(14.0)      $    7.3               $ (7.6)     $(56.7)      $   49.1 
Adjusted 
 EBITDA    $  9.9      $ 12.1       $   (2.2)              $ 39.3      $ 12.8       $   26.5 
---------   -----       -----          -----   ----------   -----       -----          -----   ---------- 
 

Fourth Quarter 2024 Results

Fourth quarter 2024 revenue decreased 11.5% to $105.9 million from $119.7 million in the fourth quarter of 2023. Wholesale revenue decreased 8.6% to $67.2 million in the fourth quarter of 2024 from $73.5 million in the fourth quarter of 2023. Wholesale channel performance was primarily driven by a $12.7 million net reduction in barter transaction revenue offset by continued distribution gains and sales growth in the FDM market, growth in our Ready-to-Drink ("RTD") coffee product, and revenue from initial shipments of Black Rifle Energy(TM). Direct-to-Consumer ("DTC") revenue decreased 17.7% to $32.2 million in the fourth quarter of 2024 from $39.1 million in the fourth quarter of 2023. DTC performance was impacted by lower customer acquisition as the Company strategically reallocated advertising spend to other areas of the business with higher returns. Revenue from Black Rifle Coffee shops ("Outposts") decreased 7.4% to $6.5 million in the fourth quarter of 2024 from $7.1 million in the fourth quarter of 2023. Outpost revenue declined due to lower transaction volumes.

Gross profit increased to $40.4 million in the fourth quarter of 2024, up from $31.7 million in the fourth quarter of 2023, representing a 27.5% year-over-year increase. Gross margin expanded 1,170 basis points to 38.1% for the fourth quarter of 2024 from 26.5% for the fourth quarter of 2023, driven by the cycling of prior-year supply chain transformation costs and productivity improvements, partly offset by pricing adjustments, coffee inflation, and higher trade promotion.

Marketing expenses increased 25.4% to $10.5 million in the fourth quarter of 2024, up from $8.4 million in the fourth quarter of 2023. As a percentage of revenue, marketing expenses rose 290 basis points to 9.9% in the fourth quarter of 2024, compared to 7.0% in the fourth quarter of 2023. The increase was driven by expanded partnerships, including the Company's engagement with UFC, higher advertising spend, and increased investment in content creation.

Salaries, wages and benefits expenses decreased 31.5% to $13.0 million in the fourth quarter of 2024 from $19.0 million in the fourth quarter of 2023. As a percentage of revenue, salaries, wages and benefits expenses decreased 360 basis points to 12.3% in the fourth quarter of 2024 as compared to 15.9% in the fourth quarter of 2023. The decrease was due to lower bonuses and a reduction in employee headcount compared to the fourth quarter of 2023.

General and administrative ("G&A") expenses decreased 19.1% to $12.2 million in the fourth quarter of 2024 from $15.1 million in the fourth quarter of 2023. As a percentage of revenue, G&A decreased 110 basis points to 11.5% in the fourth quarter of 2024 as compared to 12.6% in the fourth quarter of 2023. The decrease was due to reductions in professional services and in corporate infrastructure and support that were inefficient or duplicative.

Net loss for the fourth quarter of 2024 was $6.7 million and Adjusted EBITDA was $9.9 million. This compares to net loss of $14.0 million and Adjusted EBITDA of $12.1 million for the fourth quarter of 2023.

Financial Outlook

The Company provides the following guidance based on current market conditions and expectations for revenue, gross margin, and adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure.

For full-year fiscal 2025, the Company expects:

 
                   FY2024       FY2025 Guidance 
                 ----------  ---------------------- 
                   Actual       Low         High 
                 ----------  ----------  ---------- 
Net Revenue(1)   $391.5      $395.0      $425.0 
         Growth      (1)%         1%          9% 
Gross Margin       41.2%         37%         39% 
 
Adj. EBITDA(2)   $ 39.3      $ 20.0      $ 30.0 
---------------   -----       -----       ----- 
 

(1) A barter transaction favorably impacted Net Revenue by $28.9 million and $23.9 million in 2023 and 2024, respectively.

(2) In 2024, adjusted EBITDA included $2.3 million in RTD transformation costs, which will be excluded moving forward. Excluding this adjustment, comparable adjusted EBITDA for FY2024 was $37.1 million.

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss) in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliation, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss). See "Non-GAAP Financial Measures" for additional important information regarding Adjusted EBITDA.

Conference Call

A conference call to discuss the Company's fourth quarter and fiscal year 2024 results is scheduled for March 4, 2025, at 8:30 a.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-0609 or (201) 689-8541 for international callers. A webcast of the call will be available on the investor relation's page of the Company's website at ir.blackriflecoffee.com. For those unable to attend the conference call, a replay will be available after the conclusion of the call through March 11, 2025. The U.S. toll-free replay dial-in number is (877) 660-6853, and the international replay dial-in number is (201) 612-7415. The replay passcode is 13751105.

About BRC Inc.

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