BrewDog has reported an operating loss of £24m, with adjusted earnings before tax of just £600,000 for the past year.
However, the Ellon-based brewery's annual report for the financial year ended 31 December 2022 also revealed 13% revenue growth to £321m last year, up from £286m in 2021.
Chair Allan Leighton explained that investments in people, brand and infrastructure, together with significant impact cost headwinds "had a detrimental effect on the financial performance of the company in 2022".
Last year still delivered "market leading" beer volume growth of 66% versus pre-pandemic.
In the financial statement, chief executive James Watt said: "In 2022, we saw energy bills for our brewery increase a staggering threefold, and with price increases affecting nearly every element of our supply chain, the cost of producing Punk IPA increased by an eye-watering 34% year on year."
BrewDogs bars around the world achieved revenue growth of 69% year-on-year, even while many were hit by "unprecedented increases" in the prices of hops, malt, Co2, cans, bottles, packaging, food and utilities.
The statement noted "significant work" being undertaken to mitigate the impact of these increases, with rationalisation and competitive tendering of suppliers, efficiency improvements in production and menu engineering in bars and hotels.
During 2022, the group launched its two largest ever sites, at London Waterloo and Las Vegas, alongside with new bars in Atlanta, Brisbane and a number of smaller locations in the UK.
The original brewing facility in Ellon was also upgraded with a new brewhouse and additional canning line, which has more than doubled capacity. The site also got a new anaerobic digestor to improve sustainability, while tree planting finally commenced at BrewDog's 9,308 acre Lost Forest, alongside peatland restoration work.
Phase one was approved by Scottish Forestry in June 2022, with tree planting commencing in March 2023 and due to be completed by the end of June - with 400,000 trees having been planted. Phase two was submitted to Scottish Forestry in February and it is anticipated that works will commence sometime this summer, potentially finishing in the spring of 2025.
The group's distillery has moved into a new, purpose-built site, increasing capacity by 300%. BrewDog will be laying down over 300 casks of whisky by the time 2024 rolls around. Also during 2023, the brand will be releasing its first tequila and a new canned cocktail range.
BrewDog now employs 2,649 people worldwide. Since the pandemic started in early 2020, the workforce grown by around 60%.
This included several senior appointments in 2022, from internal candidates. Lauren Carrol was appointed chief marketing officer, James Brown was promoted to chief executive of BrewDog bars, and Tom Reding became chief digital officer.
The appointment of an additional independent non-executive director in Giny Boer "adds a new and fresh perspective to the board", according to the report.
Also during the year, BrewDog codified an ethical marketing approach in a formal policy document, "proving our commitment to fair and honest communications as a brand".
BrewDog now has more than 100 bars globally, along with four breweries and five hotels.
The group has set a goal of opening 100 bars across India in the next 10 years, with five sites already planned to open in 2023.
There is also a shortlist of sites in Australia and the US earmarked for openings this year, as well as a prospective first venue in Thailand.
The company’s AGM will be held on 28 June at the DogTap in Ellon, as well as streamed online.
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