Increase in fourth quarter sales volumes of 11% and trailing twelve-month sales volume growth of 35%

CALGARY, AB, March 30, 2026 /CNW/ - Big Rock Brewery Inc. (TSX: BR) ("Big Rock" or the "Corporation") today announces its financial results for the three months and year ended December 30, 2025.

Financial Summary

For the three months ended December 30, 2025, compared to the three months ended December 30, 2024, the Corporation reported:

   -- total sales volumes up 11.1% to 69,563 hl compared to 62,587 hl, driven 
      by a 14.3% increase in wholesale volumes and a 7.5% increase in contract 
      sales volumes; 
 
   -- net revenue increased by 23.1% to $11.1 million from $9.0 million due to 
      increased volumes and a favourable product mix; 
 
   -- gross margin increased to $3.3 million compared to $0.9 million; 
 
   -- operating loss was $(0.8) million, which is an improvement of $2.0 
      million, compared to an operating loss of $(2.8) million; 
 
   -- net loss improved to $(1.1) million from a loss of $(9.7) million, an 
      increase of $8.6 million; and 
 
   -- Adjusted EBITDA increased by $2.2 million to $1.2 million. Adjusted 
      EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures". 

For the year ended December 30, 2025, compared to the year ended December 30, 2024, the Corporation reported:

   -- total sales volumes up 34.9% to 311,594 hl compared to 230,982 hl, driven 
      by a 13.3% increase in wholesale volumes and a 73.6% increase in contract 
      volumes; 
 
   -- net revenue increased by 15.0% to $49.1 million from $42.7 million due to 
      increased volumes; 
 
   -- gross margin increased to $17.0 million compared to $10.7 million; 
 
   -- operating loss improved to $(0.2) million, compared to an operating loss 
      of $(6.1) million; 
 
   -- net loss improved to $(0.9) million from a loss of $(13.5) million, an 
      increase of $12.6 million; and 
 
   -- Adjusted EBITDA increased by $5.8 million to $3.6 million. 
 
$000, except hl and   Three months endedDecember 30    Year endedDecember 30 
per share amounts 
                      2025             2024            2025         2024 
Sales volumes - 
 wholesale (hl)                38,636          33,808      168,170     148,384 
Sales volumes -- 
 contract (hl)                 30,927          28,779      143,424      82,598 
Total sales volumes 
 (hl)                          69,563          62,587      311,594     230,982 
Gross product 
 revenue                     $ 14,347        $ 12,429     $ 63,469    $ 56,570 
Net revenue                    11,054           8,977       49,092      42,667 
Cost of sales                   7,726           8,036       32,084      31,963 
Adjusted EBITDA (1)             1,212         (1,022)        3,609     (2,182) 
Operating income 
 (loss)                         (828)         (2,830)        (179)     (6,143) 
Net (loss) income             (1,063)         (9,676)        (929)    (13,467) 
Net (loss) income 
 per share -- basic 
 & diluted                   $ (0.05)        $ (1.41)     $ (0.04)    $ (1.92) 
 
 
 
(1)  Non-GAAP financial measure. See "Non-GAAP Measures". 
 

In the fourth quarter of 2025 sales volumes increased by 11.1% compared the fourth quarter of 2024. More importantly, Adjusted EBITDA was a positive $1.1 million, which represents a $2.2 million improvement from the fourth quarter of 2024.

"Sales volumes increased 34.9% over the prior year, and we saw exceptional results within our wholesale and contract businesses. Adjusted EBITDA for the year is $5.8 million higher than was earned in 2024. It is clear through these results that our growth strategies and operational efficiencies are paying off. Although the Corporation saw some headwinds this year with the temporary increase in Alberta government markup, U.S. tariffs on aluminum and the BC General Employees' Union ("BCGEU") strike action, I am very pleased with the results of the 2025 fiscal year." said David Kinder, Big Rock's President and Chief Executive Officer.

"As we look ahead to 2026 we continue to focus on innovation, within our own portfolio and co-creation of new products with the Corporation's strategic partners, and expect to capitalize on increased market demand in certain product categories to enable the Corporation to gain market share".

Additional Information

The audited consolidated financial statements of the Corporation and the Corporation's Management Discussion and Analysis for the three months and year ended December 30, 2025 dated March 18, 2026, can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR+ at www.sedarplus.ca under Big Rock Brewery Inc.

NON-GAAP MEASURES

The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles ("GAAP"). Such financial measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers. The non-GAAP financial measures should not be considered in isolation, as an alternative to or more meaningful than the most directly comparable GAAP measures which are prepared in accordance with IFRS Accounting Standards.

"Adjusted EBITDA" is a non-GAAP financial measure that the Corporation uses to measure operating performance and borrowing capacity. The most directly comparable GAAP measure to adjusted EBITDA is net income, or net loss, as applicable. The following table details the composition of adjusted EBITDA and its reconciliation to net income, or net loss:

 
($000, except   Three months endedDecember 30   Year endedDecember 30 
where 
indicated) 
                2025       2024       Change    2025     2024       Change 
Net (loss) 
 income         $ (1,063)  $ (9,676)   $ 8,613  $ (929)  $(13,467)  $ 12,538 
Addback: 
 Interest             330        523     (193)      959      2,600   (1,641) 
 Depreciation 
  and 
  amortization        624        696      (72)    2,315      2,901     (586) 
 Share based 
  payments              9        190     (181)     (46)        138     (184) 
 Loss on 
  dispositions 
  -- net             (44)      4,354   (4,398)     (44)      2,755   (2,799) 
 Impairment            --      1,627   (1,627)       --      1,627   (1,627) 
Contingent 
 liability             --        227     (227)       --        227     (227) 
Obsolete 
 inventory             60        356     (296)       60        356     (296) 
Bad debt 
 expense              138        405     (267)      138        405     (267) 
Non-recurring 
 items              1,156         --     1,156    1,156         --     1,156 
Other expenses         --        276     (276)       --        276     (276) 
Adjusted 
 EBITDA           $ 1,210  $ (1,022)   $ 2,232  $ 3,609  $ (2,182)   $ 5,791 
 
 

Correction of Quarterly Revenue and COGS -- Gross vs Net Accounting

In the first quarter of 2026, management held discussions with its auditors, in respect of the application of IFRS 15 to a sales representation and distribution services contract which began generating revenue in the fourth quarter of 2024 but was material during the year ended December 31, 2025 and is expected to be material in fiscal 2026. Management had previously sought advice on this matter of judgment in September 2024. Following such discussions, it was concluded that IFRS 15 had been incorrectly applied with respect to whether control of the specified goods exists prior to transfer of a customer. This assessment considered various control indicators, including primary responsibility for fulfilling the promised service and bearer of inventory risk, and concluded the Company acted as an agent under IFRS 15. As a result a portion of the revenue stream under that contract was being reported on a gross revenue basis and ought to be reported on a net revenue basis under IFRS 15 in the fiscal 2025 quarterly consolidated financial statements. There is no impact to the consolidated statements of financial position, changes in shareholders' equity and cash flows, or to consolidated quarterly gross profit or net loss for the current or any historic period. Readers of the quarterly financial statements are cautioned not to rely on the gross revenue presented and are advised to review the tables in the MDA which detail the impact of this change on the interim consolidated statements of loss and comprehensive loss for each financial period and line items affected. Future filings of the interim financial statements will contain the noted adjustments in the comparative financial statements as stated in the MDA.

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation. These statements relate to expectations regarding future events or Big Rock's future performance based on certain assumptions made by Big Rock. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are not facts, but only predictions based on information presently available and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely", "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon by readers, as actual results may vary materially from such

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March 30, 2026 07:00 ET (11:00 GMT)