BIG ROCK BREWERY INC. ANNOUNCES FISCAL 2025 RESULTS WITH A $5.8 MILLION INCREASE IN ADJUSTED EBITDA

Executive Summary

• Big Rock Brewery reported strong fiscal 2025 financial results, with Adjusted EBITDA increasing by $5.8 million to $3.6 million compared to the prior year.
• The company achieved significant top-line and volume growth, with total sales volumes rising 34.9% year-over-year to 311,594 hl, driven by substantial gains in both wholesale and contract sales.
• Profitability metrics improved markedly, as net revenue grew 15.0% to $49.1 million and the net loss narrowed significantly to $0.9 million from $13.5 million in 2024.

Key Details

• FY 2025 Sales Volumes: Increased 34.9% year-over-year to 311,594 hl, comprising 168,170 hl in wholesale sales (+13.3%) and 143,424 hl in contract sales (+73.6%).
• FY 2025 Financial Performance: Net revenue rose 15.0% to $49.1 million; gross margin expanded to $17.0 million from $10.7 million; operating loss narrowed to $(0.2) million from $(6.1) million; net loss improved to $(0.9) million from $(13.5) million.
• FY 2025 Adjusted EBITDA: Increased by $5.8 million to $3.6 million.
• Q4 2025 Performance: Sales volumes grew 11.1% to 69,563 hl; net revenue increased 23.1% to $11.1 million; gross margin reached $3.3 million; operating loss was $(0.8) million; net loss was $(1.1) million; Adjusted EBITDA was $1.2 million.
• Earnings Per Share: Net loss per share (basic & diluted) was $(0.04) for FY 2025, compared to $(1.92) in FY 2024.
• Accounting Correction: Management identified an incorrect application of IFRS 15 to a sales representation and distribution contract beginning in Q4 2024. Revenue will be reported on a net basis rather than gross going forward. The correction has no impact on consolidated gross profit, net loss, balance sheet, or cash flows.
• Operational Headwinds: The company navigated temporary increases in Alberta government liquor markups, U.S. tariffs on aluminum, and the BC General Employees' Union (BCGEU) strike action.
• Strategic Outlook: Management plans to focus on portfolio innovation, co-creation with strategic partners, and capitalizing on increased market demand to gain market share in 2026.

Notable Quotes

• David Kinder, President & CEO: "Sales volumes increased 34.9% over the prior year, and we saw exceptional results within our wholesale and contract businesses. Adjusted EBITDA for the year is $5.8 million higher than was earned in 2024. It is clear through these results that our growth strategies and operational efficiencies are paying off. Although the Corporation saw some headwinds this year with the temporary increase in Alberta government markup, U.S. tariffs on aluminum and the BC General Employees' Union ("BCGEU") strike action, I am very pleased with the results of the 2025 fiscal year."
• David Kinder, President & CEO: "As we look ahead to 2026 we continue to focus on innovation, within our own portfolio and co-creation of new products with the Corporation's strategic partners, and expect to capitalize on increased market demand in certain product categories to enable the Corporation to gain market share".