SALT LAKE CITY, Utah, USA – BRC Inc., a Veteran-founded, mission-driven premium beverage company, today announced financial results for the fourth quarter and fiscal year 2024. Net loss improved to $7.6 million in 2024, a $49.1 million improvement compared to a $56.7 million net loss in 2023. Adjusted EBITDA was $39.3 million in 2024, an increase of $26.5 million from $12.8 million in 2023.
Wholesale revenue grew 8.9% compared to 2023 while consolidated net revenue decreased 1.0% in 2024 to $391.5 million.
Black Rifle Energy began shipping in late Q4, supported by national distribution through our partnership with Keurig Dr Pepper (KDP) for FY25.
Distribution of Black Rifle packaged coffee across food, drug, and mass (“FDM”) retailers increased by 11.5 percentage points in 2024, reaching 48.6% All Commodity Volume (“ACV”), while ready-to-drink coffee distribution grew by 3.8 percentage points to 47.2% ACV.
Fourth quarter 2024 revenue decreased 11.5% to $105.9 million from $119.7 million in the fourth quarter of 2023. Wholesale revenue decreased 8.6% to $67.2 million in the fourth quarter of 2024 from $73.5 million in the fourth quarter of 2023.
Wholesale channel performance was primarily driven by a $12.7 million net reduction in barter transaction revenue offset by continued distribution gains and sales growth in the FDM market, growth in our Ready-to-Drink (“RTD”) coffee product, and revenue from initial shipments of Black Rifle Energy.
Direct-to-Consumer (“DTC”) revenue decreased 17.7% to $32.2 million in the fourth quarter of 2024 from $39.1 million in the fourth quarter of 2023. DTC performance was impacted by lower customer acquisition as the Company strategically reallocated advertising spend to other areas of the business with higher returns. Revenue from Black Rifle Coffee shops (“Outposts”) decreased 7.4% to $6.5 million in the fourth quarter of 2024 from $7.1 million in the fourth quarter of 2023. Outpost revenue declined due to lower transaction volumes.
Gross profit increased to $40.4 million in the fourth quarter of 2024, up from $31.7 million in the fourth quarter of 2023, representing a 27.5% year-over-year increase. Gross margin expanded 1,170 basis points to 38.1% for the fourth quarter of 2024 from 26.5% for the fourth quarter of 2023, driven by the cycling of prior-year supply chain transformation costs and productivity improvements, partly offset by pricing adjustments, coffee inflation, and higher trade promotion.
Marketing expenses increased 25.4% to $10.5 million in the fourth quarter of 2024, up from $8.4 million in the fourth quarter of 2023. As a percentage of revenue, marketing expenses rose 290 basis points to 9.9% in the fourth quarter of 2024, compared to 7.0% in the fourth quarter of 2023. The increase was driven by expanded partnerships, including the Company’s engagement with UFC, higher advertising spend, and increased investment in content creation.
Salaries, wages and benefits expenses decreased 31.5% to $13.0 million in the fourth quarter of 2024 from $19.0 million in the fourth quarter of 2023. As a percentage of revenue, salaries, wages and benefits expenses decreased 360 basis points to 12.3% in the fourth quarter of 2024 as compared to 15.9% in the fourth quarter of 2023. The decrease was due to lower bonuses and a reduction in employee headcount compared to the fourth quarter of 2023.
General and administrative (“G&A”) expenses decreased 19.1% to $12.2 million in the fourth quarter of 2024 from $15.1 million in the fourth quarter of 2023. As a percentage of revenue, G&A decreased 110 basis points to 11.5% in the fourth quarter of 2024 as compared to 12.6% in the fourth quarter of 2023. The decrease was due to reductions in professional services and in corporate infrastructure and support that were inefficient or duplicative.
Net loss for the fourth quarter of 2024 was $6.7 million and Adjusted EBITDA was $9.9 million. This compares to net loss of $14.0 million and Adjusted EBITDA of $12.1 million for the fourth quarter of 2023.
