Brewdog: James Watt ‘frustrated’ as brewer loses almost £60m

Brewdog remains in the red despite a sharp uplift in its sales during its latest financial year, founder James Watt has revealed.

In a post on social media, the former CEO said the Aberdeenshire-based business increased its revenue by 14 per cent to £366m in 2023.

He added that it cut its operating loss to £2.5m and said “frustrating, yes we’re right on the edge of a return to our strong track record of positive EBITDA [earnings before interest, taxes, depreciation and amortisation] trading.”

The new results compare to a gross revenue of £321.2m and a net revenue of £253m. in 2022.

It also posted an operating loss of £24m in the previous 12 months while its pre-tax profit widened from £25m to £59m.

Brewdog has not made a profit since 2019

The last time Brewdog reported a pre-tax profit was the £1.1m it achieved in 2019.

Its last set of results were published on Companies House, for 2022, in July 2023.

Its accounts for 2023 were due to be filed no later than 30 June, 2024.

However, in a statement BrewDog reported a revenue of £137.5m for the first half of its current financial year.

Global bar expansion ‘continuing as planned’

James Arrow, CEO of BrewDog 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, and this will continue to be a priority as our business continues to evolve and return to sustainable, profitable growth in 2024.

“Our global bar expansion plan is also continuing as planned, increasing our footprint across Europe, US and Australia, entering new markets such as Thailand for the first time and growing our presence at major transport hubs.

“Together with our local partners we are committed to spreading our passion for quality beer around the globe.”

The results come after James Watt quit his job as chief executive after 17 years in May 2024.

The often-outspoken entrepreneur made the announcement in an emotional post on LinkedIn, reflecting on having founded the business 17 years ago in his business partner Martin Dickie’s “mum’s garage”.

The following month he announced he was to launch a new business called Social Tip, a platform that allows users to become ‘influencers’ and earn money for promoting brands.

The partial results also come after Watt attacked the possible tax rises which will be included in the Budget later this month amid reports that Brewdog is considering an initial public offering.