Brc Inc. ( (BRCC) ) has released its Q3 earnings. Here is a breakdown of the information Brc Inc. presented to its investors.
BRC Inc., known for its veteran-founded Black Rifle Coffee Company, is a premium beverage company that primarily operates in the coffee industry, with a strong commitment to supporting veterans and first responders. In its third quarter of 2024, BRC Inc. reported a decrease in consolidated net revenue by 2.3%, totaling $98.2 million. However, the company saw a growth in wholesale revenue by 3.5% compared to the previous year. The company also showcased improvements in key financial metrics such as an adjusted EBITDA of $7.1 million and a net loss of $1.4 million, which marks significant progress from the previous year’s third quarter net loss of $10.7 million.
The company’s gross profit rose to $41.3 million, reflecting a 21.4% increase from the previous year, with a notable improvement in gross margin to 42.1%. This positive shift was attributed to changes in product mix, improved productivity, and reduced warehousing costs. Despite a decrease in direct-to-consumer and Black Rifle Coffee Outposts revenue, the company strategically focused on enhancing its wholesale channel, leading to increased sales of Ready-to-Drink (RTD) products. Additionally, BRC Inc. announced plans to launch Black Rifle Energy™ RTD in the fourth quarter, supported by a national distribution partnership with Keurig Dr Pepper.
Looking ahead, BRC Inc. has revised its full-year guidance, expecting gross margin and adjusted EBITDA to increase, while narrowing its revenue range. The company remains optimistic about its growth prospects, with plans to expand its coffee products into most major grocery chains by the end of 2025. The upcoming launch of Black Rifle Energy™ is anticipated to open new market opportunities, further driving growth. Management emphasizes its continued mission to support veterans while pursuing operational excellence and strategic expansion.
