BRC Inc. reported third quarter 2024 net revenue of $98.2 million, a 2.3% decrease from $100.5 million in the prior year's third quarter. Wholesale revenue increased 3.5% to $63.7 million, driven by continued penetration into the Food, Drug and Mass (FDM) market and growth in Ready-to-Drink (RTD) products. RTD product sales increased as All Commodity Volume (ACV) percentage rose 530 basis points to 47.3%.
Gross profit increased 21.4% year-over-year to $41.3 million, with gross margin expanding 820 basis points to 42.1% from 33.9% in the third quarter of 2023. This improvement was driven by product mix shifts, productivity enhancements in RTD products, reduced warehousing costs, and favorable changes in inventory reserves. Net loss for the quarter was $1.4 million, a significant improvement from a net loss of $10.7 million in the third quarter of 2023.
Adjusted EBITDA for the third quarter of 2024 was $7.1 million, up from $6.2 million in the same period last year. The company updated its full-year fiscal 2024 guidance, expecting net revenue between $390.0 million and $395.0 million, gross margin between 40% and 42%, and adjusted EBITDA between $35.0 million and $40.0 million. This guidance reflects ongoing operational improvements and strategic investments.
The company announced a strategic partnership with Keurig Dr Pepper (KDP) for the manufacture and distribution of Black Rifle Energy™, with a launch anticipated in the fourth quarter of 2024. This partnership positions BRCC for accelerated growth and a national rollout in 2025, expanding consumption opportunities and complementing its existing coffee offerings. Direct-to-Consumer (DTC) revenue decreased 11.4% to $29.0 million due to a strategic shift of advertising spend to higher-return wholesale areas.
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