Big Rock

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For Immediate Release

CALGARY, ABNov. 2, 2021 /CNW/ – Big Rock Brewery Inc. (TSX: BR) (“Big Rock” or the “Corporation“) today announced its financial results for the three and nine months ended September 30, 2021.

Financial Highlights

For the three months ended September 30, 2021, compared to the three months ended September 30, 2020, the Corporation reported:

  • sales volumes down 6% to 47,367 hectolitres (“hl“) compared to 50,367 hl;
  • net revenue increased to $13.0 million from $12.8 million;
  • operating income down 73% to $0.4 million compared to $1.5 million;
  • Adjusted EBITDA (See “Non-GAAP Measures”) down 52% to $1.3 million from $2.7 million;
  • net income down 77% to $0.2 million ($0.03 per share) from $1.0 million ($0.15 per share); and
  • the acquisition from Fireweed Brewing Corp. (“Fireweed“) of all of its licenses, trademarks and related intellectual property in exchange for the settlement of the Corporation’s corresponding license obligation, which was a cash payment of $0.5 million, resulting in a $0.1 million gain on the extinguishment of such obligation.

For the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, the Corporation reported:

  • sales volumes down 3% to 129,201 hl from 133,550 hl;
  • net revenue up 11% to $37.2 million from $33.7 million;
  • operating income down 44% to $0.9 million compared to $1.6 million;
  • Adjusted EBITDA down 22% to $4.1 million from $5.2 million;
  • net income down to $0.6 million from $0.7 million;
  • capital spending of $5.4 million of the total $9.5 million 2021 capital program; and
  • $8.0 million drawn on total credit facilities available of $16 million.

Although the Corporation’s sales volumes are in decline, the year-to-date rate of decline is consistent with the beer industry’s national average and below Alberta’s provincial average decline. In addition, the Corporation’s year-over-year growth in the “Ready-to-Drink” category (“RTD“) is currently outpacing the overall industry growth. Licensed and partner brands have continued to provide additional exposure to the RTD category that continues to grow nationally, and the Corporation has had success in adapting to meet this noticeable shift in market demand.

Although net revenue on both a quarter-over-quarter and year-over-year basis has increased, higher than anticipated costs have contributed to the overall declines to operating income, Adjusted EBITDA and net income. Global supply chain disruptions have been the primary driver behind higher market prices impacting utilities, delivery and distribution costs as well as certain raw ingredient and material costs. These supply disruptions have also impacted lead times on the delivery of certain production inputs which has contributed to operating inefficiencies. In addition, the Corporation experienced higher than anticipated labour costs in the Calgary facilities as the strategic capital plan is being completed and the business is in a transition phase to position itself for significant growth in production and packaging volumes. In order to stabilize margins going forward into 2022, the Corporation is taking measures to manage potential future cost volatility by securing cost certainty through contract renegotiations, operational efficiency projects, increasing our supplier network, hedging and other cost mitigation strategies.

“Despite overall market trends pointing to a decline in beer sales, Big Rock continues to grow net revenue through its year-over-year growth in its co-packing business and continued expansion into the RTD category through innovation and strategic partnerships,” said President & CEO Wayne Arsenault. “While we expect continued pressure on costs moving into the fourth quarter, we remain focused on executing our 2021 capital expansion plan, which remains on budget, and growing volume through new co-packing agreements enabled by our new packaging capabilities.”

“Softened demand due largely to ongoing COVID-19 restrictions and a rising-cost environment have placed pressure on our margins,” said Chief Financial Officer, Don Sewell. “We expect that this theme will carry into the fourth quarter, however, we are confident in our ability to manage through it. Despite these pressures in the latter half of fiscal 2021, we believe the increased throughput expected in 2022 has the Corporation in a strong position to begin realizing the returns of its growth plan.”

Summary of Results

$000, except hl and per share amounts

Three months ended
September 30

Nine months ended
September 30





Sales volumes (hl)1





Gross revenue

$    17,969

$   17,830

$    50,898

$   47,273

Net revenue





Cost of sales





Operating income





Adjusted EBITDA2





Net income





Income per share (basic)

$        0.03

$        0.15

$        0.08

$     0.10

Income per share (diluted)

$        0.03

$        0.14

$        0.08

$     0.10

$ per hl

Net revenue

$    274.07

$    254.41

$    288.47

$    252.16

Cost of sales

$    178.27

$    150.00

$    184.54

$    153.55


Excludes contract manufacturing volumes due to the nature of the agreements.


Non-GAAP measure. See “Non-GAAP Measures“.

Additional Information

The unaudited consolidated financial statements and Management’s Discussion and Analysis for the three and nine months ended September 30, 2021 dated November 2, 2021, can be viewed on Big Rock’s website at and on SEDAR at under Big Rock Brewery Inc.


The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles. This press release contains the term “Adjusted EBITDA”. This financial measure does not have a standardized meaning under the Corporation’s Generally Accepted Accounting Principles and therefore may not be comparable to similar measures presented by other issuers. The calculation of Adjusted EBITDA is a non-GAAP measure, whose nearest GAAP measure is net income, or net loss as applicable, with the reconciliation between the two as follows:

($000, except where indicated)

Three months ended

September 30

Nine months ended

September 30







Net income (loss)

$       237

$   1,028


$     568

$   706

















  Depreciation and amortization







  Share based payments







  Gain on disposal of assets





  Gain on extinguishment of license obligation





Adjusted EBITDA

$    1,325

$   2,695


$   4,092

$ 5,216


Forward-Looking Information

Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or Big Rock’s future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “likely”  “may”, “project”, “predict”, “propose”, “potential”, “might”, “plan”, “seek”, “should”, “targeting”, “will”, and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this news release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this news release contains forward-looking statements pertaining to the following:

  • the anticipated benefits to be provided by Big Rock’s capital expansion plan, including increased capacity and capabilities, and the anticipated timing thereof;
  • Big Rock’s ability to grow volume through co-packing agreements;
  • that Big Rock is in a strong position to begin realizing the returns of its growth plan; and
  • the supply and demand of Big Rock’s products.

With respect to the forward-looking statements listed above and contained in this news release, management has made assumptions regarding, among other things:

  • volumes in the current fiscal year will remain constant or will increase;
  • input costs for brewing and packaging materials will not materially increase or decrease;
  • there will be no material change to the regulatory environment in which Big Rock operates;
  • there will be no material supply issues with Big Rock’s vendors;
  • that Big Rock will be able to use its new production capacity and increase volume with co-packing agreements; and
  • that the duration and extent of the COVID-19 pandemic will not be long-term.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include the risk factors set out in the Corporation’s annual information form and also include, but are not limited to:

  • the inability to maintain the current AGLC beer mark-up policy in Alberta;
  • the inability to maintain the current AGLC mark-up rates applicable to “Ready-to-Drink” beverages in Alberta;
  • the inability to grow demand for Big Rock’s products;
  • the inability to fill its production capacity and grow volume with co-packing agreements;
  • the inability to remediate manufacturing issues as they arise;
  • the worldwide economic and social impact of the COVID-19 pandemic; and
  • the duration and extent of the COVID-19 pandemic.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this news release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time’s beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, AlbertaVancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol “BR”. For more information on Big Rock visit

SOURCE Big Rock Brewery Inc.

For further information: Wayne Arsenault, President & Chief Executive Officer, or Don Sewell, Chief Financial Officer, Phone: (403) 720-3239, Fax: (403) 720-3641, Email:

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