BRC Inc., the parent company of Black Rifle Coffee Company, reported a net revenue of $391.5 million for the fiscal year ending December 31, 2024, a slight decrease of 1% from $395.6 million in 2023. The company's profitability improved significantly, with a gross profit of $161.2 million, up 28% from $125.4 million the previous year, resulting in a gross margin increase from 32% to 41%. The net loss for the year narrowed to $7.6 million compared to a loss of $56.7 million in 2023, reflecting a substantial recovery in operational performance.
The company experienced notable shifts in its revenue streams. The Wholesale channel saw a 9% increase in sales, reaching $245 million, driven by growth in packaged coffee and the launch of Black Rifle Energy. Conversely, the Direct-to-Consumer (DTC) channel faced a 14% decline, generating $123.8 million, attributed to increased customer acquisition costs and a strategic pivot towards retail channels. The Outpost channel also reported a 17% decrease in revenue, totaling $22.7 million, primarily due to reduced foot traffic and transaction volumes.
Strategically, BRC Inc. has focused on expanding its Wholesale distribution and enhancing its product offerings. The company operates 18 company-owned Outposts and 19 franchised locations across ten states, with plans to refine its Outpost strategy while prioritizing growth in the Wholesale channel. The company has also engaged in partnerships, including a recent three-year marketing collaboration with the UFC, aimed at bolstering brand visibility and customer engagement.
Operationally, BRC Inc. employed 551 individuals as of December 31, 2024, with a commitment to hiring veterans and military spouses, reflecting its mission-driven ethos. The company has implemented a restructuring plan to streamline operations, resulting in a 10% reduction in total operating expenses to $157.3 million. The company’s liquidity position remains stable, with cash and cash equivalents of $6.8 million and available borrowings of $25.5 million under its credit facilities, which are expected to support ongoing operational needs and growth initiatives.
Looking ahead, BRC Inc. anticipates continued growth in its Wholesale channel while addressing challenges in the DTC and Outpost segments. The company aims to enhance its product line and improve customer acquisition strategies, with a focus on maintaining profitability amid evolving market conditions. The management remains cautious about potential economic fluctuations and their impact on consumer discretionary spending, which could affect future performance.
About BRC Inc.
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