Q2 2024 BRC Inc Earnings Call Transcript
Key Points
- BRC Inc (BRCC) achieved a gross margin of 42% in Q2, a nearly 700 basis point improvement over the previous year.
- The company reported a positive free cash flow of $1 million, a significant turnaround from a negative $30 million in the same quarter last year.
- BRC Inc (BRCC) outpaced the market with a 28% growth in the second quarter, compared to a category decline of 2.5%.
- The introduction of Black Rifle Energy is expected to tap into the $20 billion energy drink market, leveraging natural caffeine sources.
- The company has seen strong performance in retail, with a 19% growth in its largest retail partner and ongoing positive conversations with major retailers.
- Wholesale rollouts are taking longer than expected, leading to a lower sales forecast for the year.
- Q2 revenue was relatively flat year-over-year, falling below expectations due to delays in distribution and reduced investment in the direct-to-consumer channel.
- The direct-to-consumer business faced challenges due to shifting consumer behavior post-pandemic, leading to a pullback in investment.
- The rollout of new products in major grocery retailers has been delayed to 2025, impacting near-term revenue expectations.
- Despite improvements, the company had to adjust its 2024 revenue guidance down to $385 million to $415 million.
Greetings. Welcome to the Black Rifle Coffee Company 2024 earnings call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Jason Martini. You may begin.
Good morning everyone. Thank you for joining Black Rifle Coffee Company's conference call to discuss our second quarter 2024 financial results, which were released yesterday and can be found on our website at ir.blackriflecoffee.com.
Before we start, I would like to remind you of the company's Safe Harbor language, which should be familiar to you all. On today's call, management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, please see our previous filings with the SEC.
This call will also contain non-GAAP financial measures such as adjusted EBITDA
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