Brewdog losses narrow as revenues hit £286m
Operating losses for the Scottish brewer and bar operator narrowed to £5.5m, compared to a £6.8m loss in 2020
Brewdog has reported its revenues surged 21% year-on-year from £238m to £286m in the year ended 31 December 2021, amid growing UK sales and market share growth despite pandemic restrictions being in place for much of the year.
Operating losses for the Scottish brewer and bar operator also narrowed to £5.5m, compared to a £6.8m loss in 2020, following the growth of beer volumes across the global operations and a partial reopening of the on-trade as the year progressed.
The company also reported adjusted EBITDA of £14.2m, up £6.3m (79%) year-on-year, despite “significant” losses incurred in the retail division due to continued Covid-related restrictions and closures for around half of the year.
Brewdog said its bar division has delivered “consistent record revenues” and has returned to profitability. All in all, Brewdog’s global bars achieved revenue growth of 31% in 2021.
Total volume of 977k hls was also up 23% on 2020, largely driven by the UK, Germany and Australia. Its UK performance was “strong” in the Grocery and Impulse channels, with increased points of distribution and an improved rate of sale.
Additionally, Brewdog’s e-commerce channel continued to grow as it expanded operations across Europe, added marketplace partners, and launched the beer subscription model, BrewDog and Friends.
The business has increased headcount from 1,507 to 2,346 to support Brewdog’s growth, scale group operations, and to relieve resource constraints in certain parts of the business.
Looking ahead, the company said it will continue to have an internal focus on cost in the current inflationary environment.
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.
“We are now sharing 50% of bar profits evenly with the amazing teams who work in these venues, creating a whole new business model for the hospitality sector. Secondly, I am giving away 5% of the company, worth just under £100m based on our most recent equity raise, to our salaried team members.”
