Brewdog, a major player in the brewing industry, has reported a significant increase in operating losses, totalling nearly £60 million, despite a rise in gross sales.
The company’s pre-tax losses have notably doubled from £30 million in the previous year to £59.2 million in 2023. However, Brewdog’s gross sales have increased by 11%, climbing from £321 million to £355 million. This growth is largely attributed to advancements in its grocery sector, following the launch of three new major beers: Wingman, Shore Leave, and Black Heart, in 2023.
Brewdog has successfully captured a substantial share of the UK grocery market, with Black Heart claiming 10% of Guinness’ share in supermarkets. Sales in the company’s grocery division have risen by 2% in the first half of 2024, reflecting a 10% year-on-year increase in UK grocery volumes and outperforming the total grocery beer volume market by 13 percentage points.
Despite these positive sales figures, Brewdog has not recorded a pre-tax profit since achieving £1.1 million in 2019. The current CEO, James Arrow, acknowledges that while the company still faces challenges, there have been significant improvements over the past year. Progress has been made towards enhancing operational efficiency, which remains a priority as Brewdog strives for sustainable growth in 2024.
James Watt, the company’s co-founder, expressed his frustration with Brewdog’s performance on LinkedIn, highlighting the company’s proximity to reverting to its strong EBITDA trading history. Watt, who stepped down as CEO earlier this year, has since co-founded a new venture, Living Things, a functional soda brand that recently secured a £500,000 investment following a successful market debut.
Brewdog’s financial journey illustrates a complex picture of growth coupled with challenges. Despite substantial sales increases and strategic innovations in its product lineup, the company continues to grapple with significant losses. As Brewdog endeavours to navigate these financial hurdles, the focus on operational improvement and sustainable growth remains central to its strategy.
