BrewDog Extends Loss Streak to Five Years Despite EBITDA Profit
BrewDog, the Scottish craft beer titan, has reported a pre-tax loss of £36.7 million, extending its losing streak to five years. Despite the setback, the company has returned to profitability in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
The company's revenues saw a marginal increase of £2m, reaching £357m. However, BrewDog has closed 10 bars, including its original site in Aberdeen, leading to a reduction in staff numbers from 2,618 to 2,411. Since James Watt's resignation as CEO, David Gates has taken the helm.
BrewDog's cumulative pre-tax loss since 2019 stands at £148 million. Despite this, the company achieved a record 4.56% share of the UK beer market. Co-founders James Watt and Martin Dickie have stepped down from their roles as chief executive and master brewer respectively. The company acknowledges risks from rising ingredient costs and increased competition but has a 'reasonable expectation' of adequate resources until at least the end of 2026.
BrewDog has taken on additional debt, including a £20m loan from its main shareholder, TSG Consumer Partners. Annual interest payments have increased by £4m to £17.3m due to high-interest loans. While the company has returned to EBITDA profitability, it continues to operate at a loss, marking the fifth successive year in the red.
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