BRC (BRCC) - 2024 Q4 - Annual Results

Revenue and Growth Projections - Black Rifle Coffee Company's 2024 projected revenue is approximately $392.5 million, with a 37$119.65 million, with Non-GAAP Adjusted Revenue, Net at $124.26 million[58] Profitability and Margins - The company's 2024 adjusted EBITDA margin is expected to be between 40-42$31.67 million, with Non-GAAP Adjusted Gross Profit at $46.94 million[58] - RTD transformation costs impacted Gross Profit by$15.27 million in Q4 2023[58] Direct-to-Consumer (DTC) Business - Black Rifle Coffee has over 190,000 Direct-to-Consumer (DTC) Coffee Club subscribers as of 2024[11] - DTC (Direct-to-Consumer) subscribers reached 190,000+, with an average subscriber order value of ~$30 and projected 2024 DTC net revenue of$120 million+[36] Wholesale and Retail Expansion - The company's Wholesale segment grew from ~1,000 doors in 2020 to 12,000+ by the end of 2023, representing a ~120% CAGR[29] - Ready-to-Drink (RTD) coffee product line expanded from ~10,000 locations in 2020 to 86,000+ locations by the end of 2023, with a ~100% CAGR[29] - Black Rifle Coffee's share of regional retailer coffee sales reached 3.0% in 2024, doubling the number of SKUs on shelves within the first year[31] - Wholesale business growth driven by 12,000+ doors today, with potential to reach 20,000+ doors by 2026[54] - Retail sales growth in packaged coffee from 2023 to 2024 reported at 28.8%[54] - Achieved $100 million+ in revenue at Retailer within ~18 months of launch[55] - ~22$32 million of BRCC sales are incremental to Retailer[55] - BRCC reached ~3% of total Retailer coffee sales within 4 months[55] - BRCC revenue ramped with distribution gains but has remained consistent with normal seasonal variability[55] Ready-to-Drink (RTD) and Energy Products - RTD coffee business rapidly grew to over $100 million, outpacing the category growth by ~4x[33] - RTD coffee market share increased from 3.4$20 billion+ energy market nationwide through a partnership with Keurig Dr. Pepper (KDP), covering 80% of the U.S. population[34] - The RTD Energy partnership provides immediate access to 180,000+ retail outlets via KDP's distribution network[34] - The company expanded its product portfolio to include RTD Energy, with a focus on healthier ingredients and fewer additives, aligning with market trends[35] Marketing and Customer Loyalty - Black Rifle Coffee's social media following across Instagram, X, Facebook, YouTube, and TikTok totals 6.0 million followers[21] - The company's 2024 marketing budget as a percentage of sales is projected to be 2.0%, significantly lower than competitors like Celsius (8.1%) and PepsiCo (9.1%)[26] - Black Rifle Coffee's Net Promoter Score (NPS) is 78, indicating strong customer loyalty[11] Operational Efficiency and Cost Management - Cost savings of over 30 million achieved through SG&A management measures[45] - Productivity improvements in 2024 expected to drive 23 million in savings, contributing to gross margin improvement[47] - Inventory value decreased by $12 million, representing a 21$20 billion+ energy market nationwide through a partnership with Keurig Dr. Pepper (KDP), covering 80% of the U.S. population[34] - The RTD Energy partnership provides immediate access to 180,000+ retail outlets via KDP's distribution network[34] Financial Performance and Adjustments - The company achieved six consecutive quarters of positive EBITDA since Q2 2023, with adjusted EBITDA margin improving to 9.6% in FY2024[44] - Adjusted EBITDA for Q4 2023 was $12.15 million[60] - Equity-based compensation added back$1.33 million to Adjusted EBITDA in Q4 2023[60] - EBITDA CAGR projected at 15%-25% through 2027, with anticipated pressure in 2025 due to energy launch[48]