BrewDog has reported a £5.5m operating loss for the year ending 31 December, 2021, down from a loss of £6.8m in 2020 with the business blaming bar closures during the pandemic and increased internal investment.
Total revenue was up 21% to £286m, as UK sales continued to grow, despite the pandemic. Adjusted earnings before tax rose by 79% to £14m, as improving margins were offset by investment in people and Covid-related losses from property.
Results for the year ended 31 December 2021 saw profit margins grow to 53%, up from 48% in 2020, with increased scale and operational efficiencies.
The brewer and retailer invested £13m into venue expansion, with seven new bars and two new hotels, alongside two new bars with its franchise partners in four different markets. It is planning to open 30 new venues during 2022.
BrewDog said 2022 has started well, “albeit with a challenging off-trade market”.
The company reported that there had “been significant investment in people, increasing headcount from 1,507 to 2,346. This was necessary to support the continued growth and to scale the Group operations, as well as to relieve resource constraints in certain parts of the business. As part of these initiatives, BrewDog also completed an extensive culture review and implemented improved salary and benefits, as well as investment in mental health provision, Learning & Development and HR resource.
“BrewDog has invested in the brand throughout 2021 with an increase in marketing activities across all channels of the business. A number of these included the Lost Lager launch giveaway, the launch of BrewDog & Friends and our first mainstream TV advert and large scale Out of Home billboard for the Beer For All campaign.
“Sustainability activity and investments have continued with extensive activity as the world’s first carbon negative brewery. This ranged from the significant investment in the Anaerobic Digestor facility in Ellon, progression of the operations at the Lost Forest, continued investment in an electric vehicle fleet and the investment in high quality carbon offsets.”