SALT LAKE CITY, USA – BRC Inc. has announced financial results for the third quarter of fiscal year 2022. “Overall, we were pleased with our performance in the third quarter, which was largely driven by our continued success in the RTD (Ready-to-Drink) market and entry into the FDM (Food, Drug & Mass) channel in collaboration with Walmart,” said BRCC Founder and Chief Executive Officer Evan Hafer.
“In the quarter, our RTD line continued to be the fastest growing single serve RTD coffee across all channels of trade, outpacing the RTD Coffee Category growth by 4.5x. As we look to meet this growing demand from our loyal and growing community, we continue to invest in evolving our omnichannel business model.”
“While we were only on shelves for a few weeks in Q3, the results from our launch with Walmart have been very positive. Our entry into the FDM channel unlocks significant incremental opportunity to build brand awareness and ensures customers can purchase our products in more places where they shop.
We’re confident that Walmart is the right partner, not only in customer alignment, but also in working with us to stay true to our mission of helping veterans, first responders, active military and their families by donating a portion of our coffee sales to veteran and first responder charities.
Further, as we evolve our business model and demonstrate progress on our path to profitability, we are optimistic that our entry into the FDM channel will contribute significant incremental growth, revenue and brand awareness.”
Third Quarter 2022 Financial Details
- Net revenue of $75.5 million was an increase of 26% year-over-year. Excluding the RTD production issue discussed below, net revenue was $76.1 million, an increase of 27% year-over-year
- Gross profit decreased year-over-year to $23.9 million representing a 32% gross margin. Excluding the RTD production issue discussed below, gross profit was $27.4 million, or a 36% gross margin, a sequential improvement as compared to the second quarter 2022 gross margin of 34%
- Net loss of $16.1 million
- Adjusted EBITDA (non-GAAP) of $(5.3) million, a sequential improvement from $(10.4) million in the second quarter 2022
BRC Inc.: Year-to-Date 2022 Financial Details
- Net revenue of $207.7 million, an increase of 29% year-over-year
- Gross profit increased 7% year-over-year to $69.7 million, or a 34% gross margin
- Net loss of $318.0 million (including $268.7 million of expense for non-cash fair value adjustments)
- Adjusted EBITDA (non-GAAP) of $(21.9) million.
