BIG ROCK BREWERY INC. ANNOUNCES SECOND QUARTER 2025 RESULTS AND A 45% INCREASE IN SECOND QUARTER SALES VOLUMES

Trailing twelve month sales volume growth of 39%

CALGARY, AB, Aug. 8, 2025 /CNW/ - Big Rock Brewery Inc. (TSX: BR) ("Big Rock" or the "Corporation") today announces its financial results for the three and six months ended June 30, 2025.  

Financial Summary

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

• total sales volumes up 45.3% to 84,116 hl compared to 57,908 hl, driven by contract sales volumes that more than doubled and an increase of 20.2% in wholesale volumes;
• net revenue increased by 34.2% to $16.6 million from $12.3 million on increased sales volumes;
• gross margin increased to $5.2 million compared to $4.1 million;
• operating income increased to $0.4 million, compared to an operating loss of $(0.7) million;
• net income increased by $0.1 million to $0.3 million; and
• Adjusted EBITDA increased by $0.8 million to $1.0 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures".

For the six months ended June 30, 2025, compared to the six months ended June 30, 2024, the Corporation reported:

• total sales volumes up 47.9% to 152,460 hl compared to 103,112 hl, driven by contract sales volumes that more than doubled and an increase of 10.6% in wholesale volumes;
• net revenue increased by 32.7% to $27.8 million from $20.9 million because of increased co-packing sales volumes;
• gross margin increased to $8.9 million compared to $5.9 million, an increase of 51%;
• operating income increased to $0.5 million, compared to an operating loss of $(3.0) million;
• net income increased to $0.2 million from a loss of $(2.9) million, an increase of $3.1 million; and
• Adjusted EBITDA increased by $3.0 million to $1.7 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures".

Summary of Results

$000, except hl and per share amounts	Three months ended June 30		Six months ended June 30
	2025	2024	2025	2024
Sales volumes - wholesale (hl)	48,698	40,519	80,590	72,871
Sales volumes – contract (hl)	35,418	17,389	71,870	30,241
Total sales volumes (hl)	84,116	57,908	152,460	103,112
Gross product revenue	$    20,470	$    15,792	$    34,673	$    27,080
Net revenue	16,567	12,344	27,767	20,926
Cost of sales	11,402	8,218	18,893	15,063
Adjusted EBITDA^(1)	967	165	1,655	(1,308)
Operating income (loss)	395	(667)	495	(2,966)
Net income (loss)	281	220	232	(2,853)
Net income (loss) per share (basic and diluted)	$        0.01	$        0.03	$       0.01	$      (0.41)

^(1)	Non-GAAP financial measure. See "Non-GAAP Measures".

Sales volumes increased by 45.3% compared the second quarter of 2024 and a 23.1% increase compared to the first quarter of 2025.  More importantly, Adjusted EBITDA was a positive $1.0 million, which represents a $0.8 million improvement from the second quarter of 2024.

David Kinder, Big Rock's President and Chief Executive Officer noted, "In an economically challenging and uncertain time, I am delighted to release our second quarter 2025 results.  Directionally, we are building on 4 consecutive quarters of year-over-year quarterly sales volume growth.  This momentum contributed to a significant improvement in Adjusted EBITDA of $0.8 million for the quarter and $3.0 million on a year-to-date basis. Key metrics are directionally positive, and more importantly we are fundamentally profitable from an earnings and cash flow perspective.  The management team continues to focus on mitigating the negative effects of tariffs,  the Alberta Markup increases and a general increase in costs.  In 2025 we are incredibly proud to be celebrating our 40-year anniversary and to have successfully launched our new branding and updated product portfolio, which no doubt have contributed to our success so far this year".

Additional Information

The unaudited condensed interim consolidated financial statements of the Corporation and the Corporation's Management Discussion and Analysis for the three and six months ended June 30, 2025 dated August 7, 2025, 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 where indicated)	Three months ended June 30			Six months ended June 30
	2025	2024	Change	2025	2024	Change
Net income (loss)	$        281	$   220	$        61	$      232	$   (2,853)	$   3,085
Addback:
Interest	213	587	(374)	377	1,361	(984)
Depreciation and    amortization	529	827	(298)	1,069	1,654	(585)
Share based payments	(56)	5	(61)	(23)	4	(27)
Gain on dispositions – net	—	(1,474)	1,474	—	(1,474)	1,474
Adjusted EBITDA	$        967	$   165	$   802	$      1,655	$   (1,308)	$   2,963

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 forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

This press release contains forward-looking statements pertaining to: Big Rock's continued focus on mitigating the negative effects of tariffs, changes to, and the subsequent revision of the Alberta Markup Share and general cost increases; and other similar statements.

With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things:

• the duration and impact of tariffs currently in effect and that such tariffs will remain in effect unchanged;
• markup rates applied by the Alberta Gaming, Liquor and Cannabis Commission ("AGLC");
• anticipated cost increases in Big Rock's production and supply chain;
• volumes in the current fiscal year will remain constant or continue to increase;
• there will be no material change to the regulatory environment in which Big Rock operates;
• there will be no material supply issues with Big Rock's vendors;
• seasonal fluctuations in demand; and
• Big Rock can and will execute it business plans and strategies.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the risk factors set out in the Corporation's annual information form for the year ended December 30, 2024 which is available on SEDAR+ at www.sedarplus.ca and also include, but are not limited to:

• risks related to Big Rock's credit facility with ATB;
• the inability to grow demand for Big Rock's products;
• the inability to execute its product innovation strategy and to introduce such products in the volumes necessary to fulfil its expectations;
• changes to the duration and/or impact of tariffs currently in place, including any impacts on general market demand;
• risks related to unanticipated changes to AGLC's mark-up rates;
• the risk that Big Rock may not have an increase in market demand or market share;
• the risk that Big Rock may lose co-packing contract volumes or the anticipated benefits of co-packing production;
• the risk that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses, won't help the Corporation continue to improve its financial results and strengthen its balance sheet;
• the risk that Big Rock may not realize operational efficiencies or margin growth;
• the risk that Big Rock may not have sufficient cash flows to cover forecasted expenses or return to profitability; and
• the risk that Big Rock may not be in compliance with its financial covenants for the next 12 months.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements contained herein speak only as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider^® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit www.bigrockbeer.com 

SOURCE Big Rock Brewery Inc.

For further information, please contact: David Kinder, President & Chief Executive Officer, or James Chong, Chief Financial Officer: Phone: [phone], Fax: [phone], Email: [email protected]