BRC Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
BRC Inc. (NYSE: BRCC, the “Company”), a Veteran-founded, mission-driven premium beverage company, has announced its financial results for the fourth quarter and fiscal year 2024.
Strengthening Market Position and Long-Term Growth Strategy
“Black Rifle made significant progress in strengthening our operations, bolstering our market presence, and improving profitability over the past year,” said BRCC Chief Executive Officer Chris Mondzelewski. “With expanded coffee distribution, Reports the launch of Black Rifle Energy™, and our strategic partnerships with Keurig Dr Pepper (KDP), we have built a strong foundation for long-term growth. While there is still work to be done in 2025, I am confident in our ability to execute on our strategy and build momentum. Our commitment to serving veterans and first responders remains at the heart of our mission, and I’m proud of the lasting impact we’ve made in the communities we serve—an impact that will continue to grow as we scale and expand our reach.”
Financial Performance and Growth Strategy
“In 2024, we generated substantial improvements across key financial metrics, including gross margin, adjusted EBITDA, net income, and free cash flow,” said BRCC Chief Financial Officer Steve Kadenacy. “Our focus on operational excellence has set financial conditions to invest in the Black Rifle brand this year, and I am confident it will drive sustained growth across multiple product categories and channels. With coffee distribution expanding in food, drug, and mass retailers and Black Rifle Energy™ broadening our brand into new dayparts and consumption occasions, we see significant opportunities to accelerate growth and strengthen our presence in both the coffee and energy segments.”
Fourth Quarter 2024 Financial Results
- Total Revenue: Fourth quarter revenue declined 11.5% to $105.9 million from $119.7 million in Q4 2023.
- Wholesale Revenue: Decreased 8.6% to $67.2 million from $73.5 million in Q4 2023. This was primarily due to a $12.7 million net reduction in barter transaction revenue, offset by continued distribution gains, growth in the FDM market, Ready-to-Drink (RTD) coffee expansion, and revenue from initial shipments of Black Rifle Energy™.
- Direct-to-Consumer (DTC) Revenue: Declined 17.7% to $32.2 million from $39.1 million in Q4 2023, primarily due to strategic advertising reallocation.
- Outpost Revenue: Decreased 7.4% to $6.5 million from $7.1 million in Q4 2023, mainly due to lower transaction volumes.
Profitability and Cost Management
- Gross Profit: Increased to $40.4 million from $31.7 million in Q4 2023, representing a 27.5% year-over-year increase.
- Gross Margin: Expanded 1,170 basis points to 38.1% from 26.5%, driven by supply chain improvements and cost efficiencies.
- Marketing Expenses: Increased 25.4% to $10.5 million, reflecting expanded partnerships (including UFC), higher advertising spend, and investment in content creation.
- Salaries, Wages, and Benefits: Declined 31.5% to $13.0 million from $19.0 million, reflecting reductions in headcount and lower bonuses.
- General & Administrative (G&A) Expenses: Decreased 19.1% to $12.2 million from $15.1 million, due to reductions in professional services and infrastructure support.
- Net Loss: Reported at $6.7 million, compared to a net loss of $14.0 million in Q4 2023.
- Adjusted EBITDA: Reached $9.9 million, compared to $12.1 million in Q4 2023.
