Mr. Stephen Giblin reports

BIG ROCK BREWERY REPORTS STRONG FIRST QUARTER 2023 RESULTS

Big Rock Brewery Inc. today released its financial results for the three months ended March 31, 2023.

"Our ability to deliver on a strong first quarter in fiscal 2023 has been a great win for the organization," said interim president and chief executive officer Stephen Giblin. "Our people at every level of the organization deserve recognition for the corporation's strong performance. Management is pleased to see that the changes made across the business are beginning to culminate in returning the corporation to profitability and the focus remains to continue to build upon this positive momentum as we continue through the remainder of fiscal 2023."

Financial summary

For the three months ended March 31, 2023, compared with the three months ended March 31, 2022, the corporation reported:

• Sales volumes increased by 1.5 per cent from 33,279 hectolitres (hl) to 33,778 hl;
• Net revenue increased by 18.9 per cent from $8.8-million to $10.5-million;
• Operating loss of $100,000 versus an operating loss of $1.5-million;
• Net loss of $300,000 versus a net loss of $1.3-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased from a loss of $600,000 to positive $500,000. Adjusted EBITDA is a non-GAAP (generally accepted accounting principles) financial measure.

First quarter summary

• Total sales volumes for the first quarter of 2023 increased by 1.5 per cent driven primarily by increases in private label as well as value brands of 25 per cent and 8 per cent respectively, in comparison with the first quarter of 2022;
• Cost of sales increased slightly as a percentage of revenue, driven by continued trends in increased costs in utilities, building related costs and some key raw materials, but was slightly offset by a decrease in salaries, wages and benefits;
• Selling, general and administrative expenses decreased by an aggregate $1.1-million in the first quarter of 2023 compared with 2022, driven primarily by a reduction in salaries, wages and benefits as a result of optimized restructuring efforts dating back to the fourth quarter of 2022.

Additionally, as a direct result of the large inventory writedown in the fourth quarter of 2022, the corporation has been diligent in focusing on optimizing inventory levels and warehousing. In comparison with the first quarter ended in 2022, inventory levels are nearly 40 per cent lower for the first quarter ended in 2023. Managing appropriate inventory levels as the corporation heads into peak season will continue to be at the forefront, while simultaneously ensuring that the corporation's customers are continually provided with fresh, high-quality, on-time products.

Additional information

The interim condensed consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2023, dated May 15, 2022, can be viewed on Big Rock's website and on SEDAR under Big Rock Brewery.

Big Rock is also pleased to announce that the annual meeting of Big Rock shareholders will be held on May 25, 2023, at 2 p.m. Mountain Time.

About Big Rock Brewery Inc.

In 1985, Mr. 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, its extensive portfolio of signature beers, continuing seasonal offerings, six ciders (Rock Creek Cider series), custom-crafted private-label products and other notable, licensed alcoholic beverages keeps Big Rock 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, Alta., Vancouver, B.C., and Toronto, Ont.

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