BrewDog Shows Financial Recovery as Pre-Tax Losses Fall by 38%
Craft beer pioneer BrewDog has demonstrated signs of financial recovery, with the company’s latest annual results showing a significant reduction in pre-tax losses for the year ending 31 December 2024.
The Ellon-based brewery’s pre-tax losses decreased substantially from £59.2 million in the previous year to £36.6 million, representing a 38% improvement. Post-tax losses stood at £34.5 million for the period.
Despite the challenging trading environment facing the hospitality sector, BrewDog managed to achieve a modest 1% increase in annual sales, reaching £357 million.
The company’s largest investor, TSG Consumer Partners, has committed to providing an additional £20 million in lending facilities, building upon previous financial support extended in 2022 and 2023. However, the increased borrowing has resulted in annual interest obligations rising significantly from £4 million to £17.3 million.
As part of a strategic review of its retail operations, BrewDog announced in July the closure of 10 bar locations, including its original Aberdeen venue. The closures potentially affected nearly 100 positions across the estate.
Chief Executive James Taylor characterised the closures as part of an “estate refresh” strategy, designed to address “rising costs, increased regulation, and economic pressures” impacting the wider hospitality industry.
The company has experienced contrasting fortunes across different distribution channels. While losing access to some major national retail partnerships due to competitive pricing pressures from larger international brewing groups, BrewDog has expanded its overall UK distribution network.
Taylor reported a 26% increase in distribution points over the past two years, reaching nearly 200,000 outlets across supermarkets, licensed premises, and event venues.
Following a difficult start to the year, BrewDog’s on-trade division showed strong recovery in July, posting 35% year-on-year revenue growth. Key contract wins included partnerships with prestigious venues such as Lords cricket ground, West Ham FC’s London Stadium, and the Boardmasters festival.
The company projected continued on-trade growth of approximately 20% through August and September.
After addressing distribution challenges in international markets during the first half of the year, BrewDog reported 15% underlying growth in July. The company highlighted improved sales momentum in key European markets including France and Italy.
The brewery’s management restructuring continued last month with the departure of co-founder Martin Dickie, who announced his decision to step away from both the company and the alcohol industry for personal reasons. This follows the exit of fellow co-founder James Watt in the previous year.
While acknowledging that the company’s bar operations remain “on the recovery path,” Taylor expressed optimism about closing performance gaps through the remainder of 2024.
BrewDog’s Annual General Meeting is scheduled for 29 September at the company’s Balmacassie Commercial Park headquarters.