BIG ROCK BREWERY INC. ANNOUNCES SECOND QUARTER 2025 RESULTS AND A 45% INCREASE IN SECOND QUARTER SALES VOLUMES

Executive Summary

• Big Rock Brewery Inc. reported strong financial performance for the second quarter and first half of 2025, driven by significant growth in sales volumes and improved profitability metrics.
• Total sales volumes surged 45.3% year-over-year in Q2 2025 to 84,116 hectoliters (hl), with contract sales more than doubling and wholesale volumes increasing by 20.2%.
• The company returned to profitability, reporting a net income of $0.3 million for Q2 2025 (compared to a loss in the prior year) and an Adjusted EBITDA of $1.0 million, marking a $0.8 million improvement over Q2 2024.

Key Details

• Q2 2025 Financial Highlights (Three Months Ended June 30, 2025):

  • Sales Volumes: Total sales volumes reached 84,116 hl, up 45.3% from 57,908 hl in Q2 2024.
    • Wholesale volumes: 48,698 hl (up 20.2%).
    • Contract volumes: 35,418 hl (more than double the prior year).
  • Revenue: Net revenue increased 34.2% to $16.6 million from $12.3 million.
  • Gross Margin: Increased to $5.2 million from $4.1 million.
  • Operating Income: Turned positive at $0.4 million, compared to an operating loss of $(0.7) million in Q2 2024.
  • Net Income: Increased by $0.1 million to $0.3 million.
  • Adjusted EBITDA: Increased by $0.8 million to $1.0 million.
  • EPS: Net income per share was $0.01 (basic and diluted).

• H1 2025 Financial Highlights (Six Months Ended June 30, 2025):

  • Sales Volumes: Total sales volumes reached 152,460 hl, up 47.9% from 103,112 hl in H1 2024.
    • Wholesale volumes: 80,590 hl (up 10.6%).
    • Contract volumes: 71,870 hl (more than double the prior year).
  • Revenue: Net revenue increased 32.7% to $27.8 million from $20.9 million, driven by increased co-packing sales.
  • Gross Margin: Increased 51% to $8.9 million from $5.9 million.
  • Operating Income: Improved to $0.5 million from an operating loss of $(3.0) million.
  • Net Income: Improved to $0.2 million from a loss of $(2.9) million, an increase of $3.1 million.
  • Adjusted EBITDA: Increased by $3.0 million to $1.7 million.
  • EPS: Net income per share was $0.01 (basic and diluted).

• Operational & Strategic Updates:

  • Trailing twelve-month sales volume growth stands at 39%.
  • The company is celebrating its 40-year anniversary in 2025.
  • A new branding and updated product portfolio were successfully launched in 2025.
  • Management is actively mitigating negative effects from tariffs, Alberta Markup increases, and general cost increases.
  • The company maintains a focus on streamlining production and maximizing return on sales and marketing initiatives across branded, white-label, and co-packing businesses.

Notable Quotes

• David Kinder, President and CEO: "In an economically challenging and uncertain time, I am delighted to release our second quarter 2025 results. Directionally, we are building on 4 consecutive quarters of year-over-year quarterly sales volume growth. This momentum contributed to a significant improvement in Adjusted EBITDA of $0.8 million for the quarter and $3.0 million on a year-to-date basis. Key metrics are directionally positive, and more importantly we are fundamentally profitable from an earnings and cash flow perspective."