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BRCC NYSE· BRC Inc
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BRCC NYSE· BRC Inc
Earnings report Q3 2023

BRC Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

BRC Inc. reported a net revenue of $100.54 million for the three months ended September 30, 2023, compared to $75.49 million in the same period last year. This represents a significant increase of 33% year-over-year. For the nine months ended September 30, 2023, the company's net revenue reached $275.97 million, up from $207.70 million in the prior year, indicating a growth of 33.5%.

Strengths

BRC Inc. demonstrated strong revenue growth in the latest quarter, driven by increased sales across its various segments. The company's ability to effectively manage its co-manufacturers and suppliers, along with long-term contracts requiring minimum future quantities, has contributed to its revenue growth. Additionally, BRC Inc.'s franchise store revenues have played a significant role in boosting its overall revenue. The franchise agreements, which include continuing fees based on store revenues, have provided a steady stream of income for the company.

Challenges

Despite the positive revenue growth, BRC Inc. faced challenges in managing its operating expenses. Marketing and advertising expenses increased to $8.26 million in the latest quarter, compared to $7.41 million in the same period last year. Salaries, wages, and benefits also rose to $13.91 million, up from $15.85 million in the prior year. These increased operating expenses contributed to an operating loss of $6.99 million for the quarter.

Noteworthy

It is worth noting that BRC Inc. experienced a significant increase in gross profit, reaching $34.06 million for the three months ended September 30, 2023, compared to $23.95 million in the same period last year. This growth in gross profit can be attributed to effective cost management and improved operational efficiency.

Summary

BRC Inc. delivered a strong performance in the latest quarter, with a notable increase in net revenue. The company's ability to effectively manage its co-manufacturers and suppliers, along with its franchise store revenues, has contributed to its revenue growth. However, BRC Inc. faced challenges in managing its operating expenses, resulting in an operating loss for the quarter. Despite this, the company demonstrated improved gross profit, indicating improved cost management. Overall, BRC Inc. has shown resilience and growth potential in its latest financial quarter.

Source documents

Form 10-Q  filed on Nov 09, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 60.1M
Analyst estimates Q3 EPS missed by NaN%
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