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Brewer still expanding

BrewDog profits dented after year of investment

brewdog

Punk profits: the brewer has invested heavily over the past year


 

Profits at craft beer firm Brewdog fell to less than £1million last year after investing in a brewery in America and new facilities at its Ellon headquarters.

The brewer reported a 73% drop in profits from £3.2 milion to £870,000 in the year to 31 December, while sales rocketed 55% from £71.9m to £111.5m.

The squeeze on profits followed the opening of a brewery in Ohio, as well investment in the Lone Wolf distillery in the UK.

The company is launching a brewery in Australia and is in the process of identifying sites in Asia. It is also opening a hotel at its Aberdeenshire brewery. It now has 46 bars around the world.

This expansion meant overheads went up substantially in 2017, from £20.7m to £35.1m, accounting for the year’s decrease in overall profits.

Brewdog’s fifth round of ‘equity for punks’ has also raised just over £19m from nearly 37,000 investors.

An Ordinary B share from Brewdog, which are issued through the ‘equity for punks’ scheme, was priced at £23.75 each in the latest round.



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