The accounts, which have not been sent to Companies House but have been seen by The Morning Advertiser and verified by BrewDog, are set to be sent to the registry of UK businesses shortly despite being due on 30 June 2023.
Even though the Ellon-based brewer and bar operator announced some losses in its results, it listed itself as a “going concern” and co-founder Martin Dickie said on behalf of the board: “The directors have a reasonable expectation that the group, as a whole, has adequate resources to continue its operational existence for the foreseeable future and until 31 October 2025.”
Mark Brumby, principal at Langton Capital, an investment advisory company in the pubs, bars and restaurant sector, said: “BrewDog, which comprises both the enlarged company’s brewing and retail businesses, has produced accounts for the financial year to end-December 2023, though these have not yet been presented to Companies’ House.
“The accounts show revenue, inclusive of duty, rising from £321m to £355m and the company’s loss before tax ballooning from £30.5m last year to some £59.2m for FY23. Revenues, excluding duty, rose from £253m to £281m while the gross margin slipped from 43.5% to 42.9%.
“Below the gross line, operating expenses rose sharply (by 11%) to £153m and an impairment charge of £14.5m increased reported losses. The company lost some £741k on the disposal of property & plant having made a profit on disposals, including that of a German subsidiary, of some £2.2m in the prior year.
Accumulated deficit will have risen
“As will be the case for all indebted companies, finance costs rose sharply, in BrewDog’s case to a net £13m from £6.5m in the prior year. As at the end of 2022, BrewDog had accumulated losses since incorporation (in 2006) of some £29.6m and, given the 2023 losses, the accumulated deficit will have risen to nearer £100m as at last December.”
On the future, Dickie said on behalf of the directors: “We are in business to make other people as passionate about great craft beer as we are.
“We will continue to invest in our people, our beer, our infrastructure and our breweries.
“We are significantly focused on improving sustainability and transparency, to ensure that we make great beer and have a planet to drink it on.”
He also stated BrewDog’s customers are “at the heart of the business” and ensuring its products are of the highest quality and staying ahead of consumer trends is key to its success.
Force for good
One key to BrewDog’s success has been crowdfunding through its Equity for Punks (EFP) programmes and other investors too.
Dickie added: “Our belief is that business should be a force for good. We are committed to ensuring that we set a new blueprint for business, supporting our community wherever possible.
“Our planet needs us more than ever before and we have dedicated investment and resources to projects such as our bio-energy facility, our Lost Forest tree planting and peatland restoration programme, and a consistent effort to reduce our emissions across our operations.
“Our Positive Planet accreditation, granted in 2022, is evidence of our commitment to sustainability. We are also hoping to achieve further certification from Positive Planet in 2024, for 2023’s emissions reduction.
“We also seek to benefit the communities in which we work, whether it is those surrounding our four breweries or our 100-plus bars. This includes community events, such as Christmas parties, charitable giving of both time and resources, and working closely with local businesses.”
