Brewdog’s recent financial disclosures have revealed significant operational challenges, despite seeing promising growth in certain sectors.
The renowned brewery reported an operating loss nearing £60 million, with pre-tax losses doubling from £30 million in 2022 to £59.2 million last year. This financial setback comes even as Brewdog’s gross sales climbed by 11%, increasing from £321 million to £355 million.
Amid these financial difficulties, Brewdog has highlighted advancements in its grocery division—rolling out three new beers in 2023, namely Wingman, Shore Leave, and Black Heart. Notably, Black Heart has managed to capture 10% of Guinness’ share in UK supermarkets, marking a significant achievement for the brand.
The grocery division showed resilience by registering a 2% rise in sales in the first half of 2024, alongside a 10% year-on-year growth in UK grocery volumes, outperforming the overall grocery beer market by a considerable margin of 13 percentage points.
Brewdog has not reported a pre-tax profit since securing £1.1 million in 2019. Responding to these results, newly appointed CEO James Arrow acknowledged the progress made in the past year. He emphasised the company’s focus on rectifying operational inefficiencies to achieve sustainable, profitable growth by 2024. Arrow stated, ‘We are pleased to report our trading losses reduced significantly in 2023, reflecting the significant changes we have made to address inefficiencies in the way we operate.’
James Watt, co-founder and former CEO, expressed his frustration on LinkedIn, noting Brewdog’s proximity to returning to a record of positive EBITDA trading. Despite stepping down as CEO in May, Watt’s involvement with the company remains impactful, as illustrated by his recent venture into a new soda brand, Living Things, which has already secured substantial pre-seed funding.
Looking ahead, Brewdog aims to balance its innovative ventures with a clear focus on operational efficiency to navigate current financial challenges.
