Following last year’s £30.5m loss, the company states that this is a result of higher operational costs due to the pandemic and the conflict in Ukraine, which have disrupted global supply chains, and the surge in energy prices. Despite posting pre-tax profits of £1.1m in 2019, the company’s losses escalated to £12.5m in 2020 and £9.4m in 2021.

BrewDog’s annual report for 2022 shows a 12% rise in revenue, standing at £321.2m, driven by a return to more regular trading conditions after the pandemic. In particular, the company’s global bars saw a revenue increase of 69% in 2022, signalling the robust revival of the hospitality sector despite persistent pandemic restrictions. However, the company also saw unprecedented increases in the cost of essentials such as hops, malt, CO2, cans, bottles, packaging, food ingredients, and utilities.

Chief executive James Watt said: “In 2022, we saw energy bills for our brewery increase a staggering threefold, and with price increases affecting nearly every element of our supply chain, the cost of producing Punk IPA increased by an eye-watering 34% year on year.”

To combat these challenges, BrewDog has sought to enhance efficiency through rationalising and competitively tendering suppliers, improving production and retail processes. The company also reported a 66% beer volume growth in comparison to pre-pandemic levels, attributing this to continuous investment in personnel, brand, and infrastructure.

In light of international expansion, BrewDog has established new bars in Las Vegas, Atlanta, and Brisbane, and has plans for more outlets at UK airports and railway stations. In addition to their brewing activities, the company has made significant progress towards sustainability with upgrades at its original Ellon facility and the commencement of tree planting at their 9,308-acre Lost Forest. Further, BrewDog’s distillery has expanded its capacity by 300%, with the production of whisky casks set to surpass 300 by 2024.

As of 2023, BrewDog employs 2,649 people globally, a 60% increase since the onset of the pandemic in 2020. This includes several senior appointments and an additional independent non-executive director, Giny Boer. BrewDog also codified an ethical marketing approach in a formal policy document in the past year, reaffirming its commitment to fair and transparent communication as a brand.

Despite the losses, BrewDog is optimistic about its future, with plans to open 100 bars across India in the next decade.