Q1 2025 BRC Inc Earnings Call Transcript
Key Points
- BRC Inc (BRCC) achieved a 21% sales growth in the coffee category, outperforming the category's 4% increase.
- The company's distribution in grocery increased by 25 percentage points year over year, reaching 45% ACV.
- The ready-to-drink coffee business saw a 7% sales increase, maintaining its position as the third largest RTD coffee brand in the US.
- BRC Inc (BRCC) successfully launched Black Rifle Energy into retail, reaching 21% ACV in nearly 12,000 locations.
- The company is committed to its mission of supporting military and first responder organizations, which enhances brand loyalty and community engagement.
- First quarter revenue declined 9% compared to the prior year, impacted by non-recurring revenue from bartered transactions and loyalty rewards accrual changes.
- Direct-to-consumer revenue declined 15% in the first quarter, reflecting a shift towards retail purchases.
- Gross margin declined by 680 basis points to 36% of sales, affected by increased trade investment, green coffee inflation, and loyalty rewards changes.
- The company faces potential $5 million EBITDA impact in 2025 due to tariffs, with one-third of cost of goods sold tied to imports.
- Adjusted EBITDA declined by $11.6 million compared to the first quarter of last year, reaching approximately $1 million.
Greetings and welcome to Black Rifle Coffee Company first-quarter 2025 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matthew McGinley, Vice President, Investor Relations. Thank you. Please go ahead.
Good morning, everyone, and thank you for joining Black Rifle Coffee Company's first-quarter 2025 financial results conference call. We released our results yesterday and the press release and related materials are available on our investor relations website at ir.blackrilecoffee.com. Before we begin, I would like to remind you of the company's Safe Harbor statement regarding forward-looking statements.
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
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