TORONTO, Canada – Aegis Brands Inc. has reported financial results for the third quarter ended September 25th, 2022. Aegis reported a loss for the quarter was $2,544,000 or $(0.10) per share compared to a loss of $2,780,000 or $(0.12) per share last year on the continuing operations of the business.
Year to date Net Loss was $6,874,000 compared to $5,783,000 last year. Bridgehead’s EBITDA for the quarter was a loss of $116,000 compared to a gain of $606,000 last year primarily due to the timing of subsidies received in 2021.
Bridgehead
Total revenue in the third quarter at Bridgehead increased from $2,864,000 last year to $3,373,000 which represents a 17.7% increase. Same coffeehouse sales increased by 16.9% mainly due to increased customer traffic and some menu price increases. Total coffeehouse sales increased from $2,457,000 to $2,952,000 or 20.1% due to the increase in same coffeehouse sales and the successful operations of the newest location at Carlton University.
Year to date, the coffeehouse sales were $7,748,000 compared to $6,029,000 in the prior year, representing an increase of $1,719,000 or 28.5%. Same coffeehouse sales were also up by 22.8% year to date.
The leadership team at Bridgehead is excited to welcome back the people of Ottawa as they make their return to pre-pandemic life. The coffeehouses are expanding their ability to serve their products by launching a new and improved off-premise catering service for nearby offices and event centres. Digitally enabled, this service will provide incremental sales with limited incremental labour for the existing coffeehouse locations.
“Although the sales are going in the right direction and picking up momentum, the Bridgehead team has also been finding new revenue sources within our coffeehouses. Initiatives such as off-premise catering and local vendor pop-ups within the stores have been introduced to supplement the top line sales. The downtown Ottawa traffic is still greatly reduced compared to 2019 and will continue to be until the federal government workers return to the office on a more regular basis,” said Steven Pelton, President and CEO of Aegis Brands.
The wholesale channel continues to improve and gain momentum with sales of $287,000 and $937,000 in the quarter and year to date respectively. This represents a 22.1% increase over 2021. The brand is now selling at 136 grocery stores throughout Ontario compared to less than 60 this time last year. The brand continues to believe that wholesale will be a significant revenue and profit driver as Bridgehead becomes a mainstay in the coffee aisle throughout the province and beyond in the coming years.
Aegis Brands Inc.
With the acquisition of St. Louis and the progress of Bridgehead, the transformation of Aegis is well underway. Aegis is eager to continue to grow these brands in both traditional bricks and mortar locations as well as through new business channels such as wholesale, ecommerce and other non-traditional locations. Additionally, Aegis will continue to look for complimentary, accretive acquisition opportunities to add to the family of great brands.
