Wholesale revenues continue to drive the veteran-owned coffee chain’s sales this year, contributing 61% of third quarter revenues
The business posted a 91% increase in wholesale revenue to $61.5m | Photo credit: Black Rifle Coffee Company
Black Rifle Coffee Company (BRCC) is making headway in developing a ‘self-sustaining business model’ following strong third quarter sales, CEO Evan Hafer has said.
The Utah-based coffee chain achieved 33% year-on-year sales growth to reach $100.5m, driven by a 91% increase in wholesale revenue to $61.5m.
BRCC’s ready-to-drink (RTD) segment was highlighted as a key performer following increased national retail distribution.
Additionally, sales from BRCC’s 17 outlets increased 20% to $6.2m while direct-to-consumer (DTC) revenues fell 14% to $33m following an ongoing strategy to redirect investment to faster-growing areas of the business, such as wholesale.
Higher group level sales volumes lifted gross profit 42% year-on-year to $34.1m. BRCC also narrowed its net loss to $10.7m, compared to $14.7m in the second quarter and $16.1m in the third quarter of 2022.
“The Black Rifle Coffee Company brand has never been stronger. I am delighted by the dramatic swing towards profitability of the company because it signals a new era for BRCC where we have a self-sustaining business model that drives revenue, profit and shareholder returns,” said Evan Hafer, CEO, BRCC.
BRCC expects full-year revenues to reach $440m alongside adjusted EBITDA of between $5m-$20m.
In August 2023, the veteran-owned coffee chain received a $56m credit facility from Los Angeles-based private credit firm Whitehawk Capital Partners to fund outlet growth, wholesale distribution and refinance existing debt.