Slide 1: Fourth Quarter and Fiscal Year 2024
Fourth Quarter And Fiscal Year 2024 We are America’s Coffee®
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements about the BRC Inc. (the “Company”, “we”, “us” and “our”) and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentati
Slide 3: Today's Speakers
TODAY’S SPEAKERS Chris Steve Matt Mondzelewski Kadenacy McGinley President and Chief Executive Officer Chief Financial Officer VP Investor Relations Black Rifle made significant progress in strengthening our operations, bolstering our market presence, and improving profitability over the past year.
Slide 4: 2024 Fiscal Year Highlights
2024 FISCAL YEAR HIGHLIGHTS Gross Revenue Margin Net Revenue $391.5 million Gross Margin Expanded to 41.2% with Wholesale Revenue growing 9% compared to 31.7% in FY 2023 compared to FY 2023 Free Cash Profitability Flow Adjusted EBITDA1 Free Cash Flow2 $39.3 million $2.6 million up $26.5M YoY compare
Slide 5: 2024 Fourth Quarter Highlights
2024 FOURTH QUARTER HIGHLIGHTS Gross Revenue Margin Net Revenue Gross Margin Expanded to $105.9 million 38.1% up $7.7M QoQ compared to 26.5% in Q4 2023 Free Cash Profitability Flow Adjusted EBITDA1 Free Cash Flow2 $9.9 million $0.5 million down $2.2M YoY compared to $7.0M in Q4 2023 1 Refer to slide
Slide 6: Channel Highlights
sarc | « | v Channel Highlights i LACK RIFLE
Slide 7: Distribution Growth in FDM Continues, Driving Market Share Gains
DISTRIBUTION GROWTH IN FDM CONTINUES, DRIVING MARKET SHARE GAINS Coffee xAOC BRCC xAOC ACV GAINS CONTINUE, WITH SIGNIFICANT ADDITIONAL POTENTIAL BRCC xAOC BRCC Grocery 21.9% 48.6 45.2 13.1% 37.1 ACV 17.4 1.3% -0.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2024 Q4 2024 2022 2023 2024 Nielsen Total US Food
Slide 8: DTC at the Core: Reshaping for Revitalization
DTC AT THE CORE: RESHAPING FOR REVITALIZATION With the addition of new products, optimization of the customer experience, and an increase in qualified traffic, we are focused on stabilizing the eCommerce channel DTC Focus Areas for 2025 Total Subscribers 190k+ Enhance UI/UX on the BRCC website and a
Slide 9: RTD Distribution Gains Continue to Build Market Share
RTD DISTRIBUTION GAINS CONTINUE TO BUILD MARKET SHARE Black Rifle Ready to Drink Coffee became the #3 brand in the category in 2024 BRCC RTD ACV BRCC RTD Share BRCC xAOC + Convenience BRCC xAOC + Convenience 47.2 4.6% 43.4 38.6 Share ACV 2.5% 2022 2023 2024 2022 2023 2024 Nielsen Total US xAOC + Con
Slide 10: Black Rifle Energy Launched December 2024
LAUNCHED DECEMBER 2024 Black Rifle Energy brings a zero-sugar, clean energy option to a consumer market ready for our TM unique mission-driven approach BRC Inc. | 10
Slide 11: Operational Performance & Financial Results
Operational Performance & Financial Results
Slide 12: Annual Financials
ANNUAL FINANCIALS $ million (1%) +950 bps GROSS MARGIN NET REVENUE 41.2% $395.6 $391.5 31.7% FY 2023 FY 2024 FY 2023 FY 2024 ADJUSTED EBITDA1 207% FREE CASH FLOW2 FY 2023 FY 2024 $2.6 $39.3 ($52.2) $12.8 FY 2023 FY 2024 Inflection 1 Refer to slide 26 for a reconciliation of “Adjusted EBITDA” 2 Refer
Slide 13: Quarterly Financials
QUARTERLY FINANCIALS $ million (12%) +1160 bps GROSS MARGIN NET REVENUE $119.7 38.1% 26.5% $105.9 Q4 2023 Q4 2024 Q4 2023 Q4 2024 (18%) (93%) ADJUSTED EBITDA1 FREE CASH FLOW2 $12.1 $7.0 $9.9 $0.5 Q4 2023 Q4 2024 Q4 2023 Q4 2024 1 Refer to slide 26 for a reconciliation of “Adjusted EBITDA” 2 Refer to
Slide 14: Delivery of Gross Margin to Achieve 40%+ Annual Target
DELIVERY OF GROSS MARGIN TO ACHIEVE 40%+ ANNUAL TARGET IN ‘24 Q4 YoY Gross Margin 11.3% 37.8% 3.4% 0.3% 38.1% -2.3% -1.0% 26.5% Q4 2023 RTD Transformation Adj. Q4 2023 Trade & Price Investment Coffee Inflation Productivity Loyalty Q4 2024 Gross Margin Gross Margin Gross Margin As part of our supply
Slide 15: Fiscal Year Adj. EBITDA Margin 10%
FISCAL YEAR ADJ. EBITDA MARGIN 10% $ thousand 10.2% EBITDA Margin Q4 Adj. EBITDA FY Adj. EBITDA 10.0% EBITDA Margin 9.4% $12.1 EBITDA Margin $7.5 $39.3 $4.3 $9.9 $19.1 3.2% EBITDA Margin ($6.6) $12.8 Q4 2023 Gross Profit SG&A Q4 2024 FY 2023 Gross Profit SG&A FY 2024 Adj. EBITDA Adj. EBITDA Adj. EBI
Slide 16: Outlook
Outlook
Slide 17: 3-Year Financial Targets
3-YEAR FINANCIAL TARGETS Revenues Gross Margin Adjusted EBITDA 10%-15% 40%+ 15%-25% Revenue CAGR Through 2027 Target Gross Margin EBITDA CAGR Through 2027 Anticipate a higher rate of Gross margins will benefit Gross margin improvement growth in 2026 and 2027 as from an ongoing mix shift into and SG&
Slide 18: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE Revenues Gross Margin Adjusted EBITDA $395M-$425M 37%-39% $20M-$30M 1% to 9% Growth in 2025 Gross Margin Range Adj. EBITDA Range Cycling $30.4M of barter revenue 2025 headwinds include: Dollar decline YoY driven by gross and loyalty reserve benefits that will not recur in 202
Slide 19: Appendix
BLACK Ger ~ COFFEE COMPANY a“ Appendix
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS BRC Inc. | 20
Slide 21: Income Statement
INCOME STATEMENT BRC Inc. | 21
Slide 22: Balance Sheet
BALANCE SHEET Consolidated Balance Sheets {in thousands, except share and par value amounts) Assets Current assets: ‘Cash and cash equivalents s Restricted cash — Accounts receivable, net Inventories, net Prepaid expenses and other current assets Total current assets Property, plant and equipment, n
Slide 23: Cash Flow
CASH FLOW Consolidated Statements of Cash Flows (in thousands) Operating activities Net loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization Equity-based compensation Amortization of debt issuance costs ‘Loss on disposal of asse
Slide 24: Cash Flow (Continued)
CASH FLOW (CONTINUED) BRC Inc. | 24
Slide 25: Key Operational Metrics
KEY OPERATIONAL METRICS BRC Inc. | 25
Slide 26: Reconciliation of Net Loss to Adjusted EBITDA
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (1) Represents the non-cash expense related to our equity-based compensation arrangements for employees, directors, and consultants. (2) Represents non-capitalizable costs (e.g. pre-implementation discovery, training, and post-implementation monitoring)
Slide 27: Reconciliation of Gross Margin to Adjusted Gross Margin
RECONCILIATION OF GROSS MARGIN TO ADJUSTED GROSS MARGIN BRC Inc. | 27
Slide 28: Reconciliation of Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW BRC Inc. | 28
Slide 29: 2025 Outlook
2025 OUTLOOK For the full-year fiscal 2025, the Company expects: FY2024 FY2025 Guidance Actual Low High Net Revenue’ $391.5 $395.0 $425.0 Growth (1%) 1% 9% Gross Margin 41% 37% 39% Adj. EBITDA” $39.3 $20.0 $30.0 (1) A barter transaction favorably impacted Net Revenue by $28.9 million and $23.9 milli