Craft beer brand BrewDog has posted robust annual figures after benefitting from new products and increased distribution.
Over the year to 31 December 2021, the company’s operating loss narrowed from £6.8m to £5.5m, despite the impact of the pandemic on its retail estate and increased investment.
Adjusted EBITDA jumped 79% to £14m as improving margins offset Covid-related losses. Gross profit margin grew from 48% to 53% due to increased scale and operational efficiencies.
Meanwhile, revenues surged up 21% to £286m as UK sales and its market share grew despite pandemic-related restrictions in the on-trade.
Total volume was up 23% on 2020, largely driven by the UK, Germany and Australia. UK performance was said to be strong in the Grocery and Impulse channels, with increased points of distribution and improved rate of sale across many of its customers, resulting in BrewDog maintaining its position as the fastest-growing beer brand in its key markets. The group noted that the e-commerce channel also continued to grow as it expanded operations across Europe, added marketplace partners, and launched the beer subscription model, BrewDog & Friends.
The gradual return of hospitality during 2021 also benefitted its on-trade customers and bars. Global bars achieved revenue growth of 31% in 2021 from 2020, despite being closed or with heavily restricted trade for much of the year across all geographies.
BrewDog stated that 2022 had started well, with the first period since the first quarter of 2020 broadly unimpacted by Covid restrictions, albeit with a “challenging” off-trade market. The group noted that its bar division had delivered record revenues and returned to profitability.
It also stated that recent investments, market share improvements and growth ahead of the market, meant it was well placed to deal with the challenges of the current supply chain pressures facing all businesses.
James Watt, CEO of BrewDog said: “2021 was another year of huge progress. Though challenges remained, not least the continued closure of much of our bar estate during the year, we delivered significant growth across the business. We are investing in our brand, sustainability, our operations, but most importantly, our people. Being the best employer we can be, and offering brilliant careers, is the surest way to support our future growth.”
