Q3 2024 BRC Inc Earnings Call Transcript
Key Points
- BRC Inc (BRCC) reported a 15% growth in adjusted EBITDA compared to the third quarter of last year, indicating improved profitability.
- The company announced a new energy distribution partnership with Keurig Dr. Pepper, which will provide access to over 180,000 retail outlets nationwide.
- BRC Inc (BRCC) achieved a 15% growth in the food, drug, and mass channel, outperforming a flat category, and nearly 25.8% year-to-date growth.
- The company has seen a year-over-year improvement in gross margin by more than 8 basis points, reflecting operational efficiencies.
- BRC Inc (BRCC) has a strong brand identity and a loyal customer base, with 58% of its consumers already being energy drinkers, supporting the launch of Black Rifle Energy.
- Third quarter revenue declined 2% year-over-year, primarily due to cycling of barter transactions and shifting consumer preferences away from direct-to-consumer channels.
- The direct-to-consumer business continues to be impacted by broader market trends, with consumers shifting back to retail purchasing patterns post-pandemic.
- Higher green coffee prices exerted modest pressure on gross margins, despite efforts to mitigate margin volatility.
- The company expects increased trade and slotting fees in 2025, which could impact margins.
- BRC Inc (BRCC) adjusted its free cash flow conversion expectations due to higher inventory levels than originally planned to support growth in the FDM channel.
Greetings and welcome to the Black Rifle Coffee Company third-quarter 2024 earnings call.
(Operator Instructions)
It is now my pleasure to introduce your host, Matt McGinley. Thank you. You may begin.
Good morning, everyone, and thank you for joining Black Rifle Coffee Company's third-quarter 2024 financial results conference call. We released our results yesterday, and they can be found on our website at ir.blackriflecoffee.com. Before we begin, I would like to remind you of the company's Safe Harbor statement.
During today's call, management may make forward-looking statements, including guidance and the underlying assumptions. These statements are based on expectations that involve risks and uncertainties, which could cause actual results to differ materially. For a further discussion of these risks, please refer to our previous filings with the SEC.
Additionally, this call will include non-GAAP financial measures such as adjusted EBITDA and free cash flow.
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