Punk profits: further expansion is planned

BrewDog’s investment in pubs and a new brewery in the US has been rewarded with a 55% rise in sales to £111.5 million.

Rising costs from £20.7m to £35.1m saw pre-tax profits last year more than halve from £3.7m to £1.4m, though underlying profits, or adjusted EBITDA, increased 47% to £8.9m.

In its annual report, the Aberdeenshire company said: “This validates our strategy of investing heavily in new capacity to scale the business whilst maintaining healthy profitability.

“We continue to re-invest these profits in our beer and people to underpin future revenue growth and solid profitability.

“We are forecasting further strong revenue growth for 2018 as we take advantage of a full year’s production from our Columbus brewery, continued international expansion and further strong UK revenue growth in both the on trade and off trade channels.”

Brewdog was founded by James Watt and Martin Dickie in 2007 and its Punk IPA is the biggest selling craft beer in the UK.

The company now has 46 bars and a brewery in Ohio. It is launching a brewery in Australia and a hotel alongside its Ellon headquarters.

The highest paid director saw his total pay package, including pension contributions, rise to £214,000 from £184,000 although overall directors’ pay fell to £1.07m from £1.12m.

Brewdog was valued at about £1 billion last year after TSG Consumer Partners, a US private equity group, paid £213 million for a 22% stake.