Brewer still expanding
BrewDog profits dented after year of investment
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.