Aberdeenshire’s BrewDog lost £59 million last year ahead of its controversial founder James Watt stepping down as chief executive.
It is the fourth successive year the craft beer behemoth has posted substantial pre-tax losses, with the company last announcing a profit in 2019.
After reporting pre-tax profits of £1.1 million that year, BrewDog has had losses of £12.5m in 2020, £9.4m in 2021 and £30.5m for 2022 — with 2023’s figure more than the previous three years combined.
But new chief executive James Arrow said the firm remains optimistic going in to 2025, pointing out a successful start to 2024 for the pub and brewery business and new bars opening in locations including Thailand, Australia and Belfast.
He said trading losses were “reduced significantly” last year, brought about through “efficiencies” changes.
BrewDog loss blamed on ‘historic acquisitions’
Revenues have increased on 2022, with £355m reported in 2023 compared to £321.2m the year previous — a rise of more than 10%.
And BrewDog’s Punk IPA remains the biggest selling craft beer in the UK, with a more than 19% market share according to figures.
Meanwhile, the launch of its Black Heart beer reportedly took 10% of Guinness’ share of supermarket sales for stout.
BrewDog said its huge £59m pre-tax loss was “driven by one off impairment costs related to historic acquisitions and restructuring”.
This is understood to include the closure of the Hawkes cidery and taproom in London in November 2023.
Chief executive James Arrow claimed the business has returned to profitability this year.
He said: “The progress made in 2023 and the first half of 2024 demonstrates the appeal of our brilliant beers, the power of our brand, and the strong appetite for quality craft beer in the UK and around the world.
“Our focus remains on delivering sustainable profitable growth, so that we can continue to invest in our beers, our bars and most importantly our people.
“We are pleased to report our trading losses reduced significantly in 2023, reflecting the significant changes we have made to address inefficiencies in the way we operate.
“This will continue to be a priority as our business continues to evolve and return to sustainable, profitable growth in 2024.”
Accounts late
The company is late filing its audited annual accounts, which were due for publication by the end of June.
The audited accounts are still to be posted officially, with The Press and Journal given access to them via a press release.
Based in Ellon, the company is one of the largest private employers in the north-east, with staff numbers exceeding 2,700.
James Watt steps down
James Watt stepped down as chief executive in May this year, citing a desire to spend more time with family and friends after 17 years at the helm.
He set-up the company from a Fraserburgh garage with his best friend Martin Dickie in 2007.
Since then, BrewDog has rapidly expanded into a multi-national beer producer, with bars all over the world.
In 2021, a BBC documentary reported a “culture of fear” which had trickled through BrewDog, with former staff alleging a toxic and sexist workplace and inappropriate behaviour from Watt himself.
James Watt and the company furiously hit out at the accusations, calling them “false rumours and misinformation”.
Watt remains a 21% shareholder and is now uses the title of “captain and co-founder”.
He warned this week UK Government plans to hike capital gains tax will prompt an “exodus of entrepreneurs”.
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