Punk craft beer brand BrewDog has narrowed its losses as NPD and growing supermarket distribution helped revenues jumped 21% last year.
Operating losses fell to £5.5m, compared with £6.8m in 2020, and adjusted EBITDA increased 79% to £14m despite the Aberdeenshire-headquartered group’s global estate of bars still being held back by Covid restrictions in 2021.
Margins also grew to 53% as a result of increased scale and operational efficiencies leaving the group well-placed to deal with the inflationary challenges in the market, according to BrewDog’s annual results presentation.
Revenues increased £48m to £286m last year on the back of a 23% rise in volumes, driven by its performance in the UK, US, Germany and Australia.
The brand benefitted during the pandemic from further rapid growth and market share gains in UK supermarkets, with its latest launches - Lost Lager and Hazy Jane - two of the fastest-growing SKUs in the country, according to BrewDog.
BrewDog said 2022 had started well as it was broadly able to operate without any Covid restriction for the first time since early 2020, but it called the off-trade market “challenging”.
CEO James Watt, who co-founded the business with Martin Dickie in 2007, said it was another year of “huge progress” and added BrewDog’s journey had only just started, with the next 15 years promising to be “even more exciting.
“The legacy beer brands have had it their own way for over a century and it’s time that changed,” he added.
Watt’s reputation has come under intense scrutiny over the past year, with allegations from former employers of a “toxic culture” at the group and a controversial documentary aired on BBC Scotland.
BrewDog brought in former Asda boss Allan Leighton as chairman in September as a result and, last month, launched a blueprint to give all salaried staff a £100m share of the business, alongside a profit sharing scheme for bar staff.
The group said it spent £9m more on people in 2021 and made 839 new hires, bringing the workforce to 2,346 strong.
“We are investing in our brand, sustainability, our operations, but most importantly, our people,” Watt said.
“Being the best employer we can be, and offering brilliant careers, is the surest way to support our future growth.”
He added: “The recent announcement of the ‘Blueprint’, with two pivotal people initiatives, are amongst the most radical decisions we have ever made and are my favourite things we have ever done as a business.
“This is about ensuring that we win collectively as a team and fully recognise all the hard work our incredible people contribute to making this business a success.
“We believe we have a once in a generation opportunity to build a business and brand that has a positive impact on the world. We are passionately committed to our goal of becoming one of the world’s five most valuable beer brands over the next five years, built on our three core pillars of ‘Beer, People and Planet’.
“We have always wanted to build a totally different business model where our people are truly connected to the businesses and one where every single person in our team can directly share in the success we create together.”
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