/UPDATE -- Big Rock Brewery Inc./

/UPDATE -- Big Rock Brewery Inc./

This release has been updated to include new information provided by Big Rock Brewery Inc. The complete, corrected release follows:

BIG ROCK BREWERY INC. ANNOUNCES FISCAL 2025 RESULTS WITH A $5.8 MILLION INCREASE IN ADJUSTED EBITDA

Increase in fourth quarter sales volumes of 11% and trailing twelve-month sales volume growth of 35%

CALGARY, AB, March 30, 2026 /CNW/ - Big Rock Brewery Inc. (TSX: BR) ("Big Rock" or the "Corporation") today announces its financial results for the three months and year ended December 30, 2025.  

Financial Summary

For the three months ended December 30, 2025, compared to the three months ended December 30, 2024, the Corporation reported:

• total sales volumes up 11.1% to 69,563 hl compared to 62,587 hl, driven by a 14.3% increase in wholesale volumes and a 7.5% increase in contract sales volumes;
• net revenue increased by 23.1% to $11.1 million from $9.0 million due to increased volumes and a favourable product mix;
• gross margin increased to $3.3 million compared to $0.9 million;
• operating loss was $(0.8) million, which is an improvement of $2.0 million, compared to an operating loss of $(2.8) million;
• net loss improved to $(1.1) million from a loss of $(9.7) million, an increase of $8.6 million; and
• Adjusted EBITDA increased by $2.2 million to $1.2 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures".

For the year ended December 30, 2025, compared to the year ended December 30, 2024, the Corporation reported:

• total sales volumes up 34.9% to 311,594 hl compared to 230,982 hl, driven by a 13.3% increase in wholesale volumes and a 73.6% increase in contract volumes;
• net revenue increased by 15.0% to $49.1 million from $42.7 million due to increased volumes;
• gross margin increased to $17.0 million compared to $10.7 million;
• operating loss improved to $(0.2) million, compared to an operating loss of $(6.1) million;
• net loss improved to $(0.9) million from a loss of $(13.5) million, an increase of $12.6 million; and
• Adjusted EBITDA increased by $5.8 million to $3.6 million.

In the fourth quarter of 2025 sales volumes increased by 11.1% compared the fourth quarter of 2024.  More importantly, Adjusted EBITDA was a positive $1.1 million, which represents a $2.2 million improvement from the fourth quarter of 2024. 

"Sales volumes increased 34.9% over the prior year, and we saw exceptional results within our wholesale and contract businesses.  Adjusted EBITDA for the year is $5.8 million higher than was earned in 2024. It is clear through these results that our growth strategies and operational efficiencies are paying off. Although the Corporation saw some headwinds this year with the temporary increase in Alberta government markup, U.S. tariffs on aluminum and the BC General Employees' Union ("BCGEU") strike action, I am very pleased with the results of the 2025 fiscal year." said David Kinder, Big Rock's President and Chief Executive Officer.

"As we look ahead to 2026 we continue to focus on innovation, within our own portfolio and co-creation of new products with the Corporation's strategic partners, and expect to capitalize on increased market demand in certain product categories to enable the Corporation to gain market share".

Additional Information

The audited consolidated financial statements of the Corporation and the Corporation's Management Discussion and Analysis for the three months and year ended December 30, 2025 dated March 27, 2026, can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR+ at www.sedarplus.ca under Big Rock Brewery Inc.

NON-GAAP MEASURES

The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles ("GAAP"). Such financial measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers. The non-GAAP financial measures should not be considered in isolation, as an alternative to or more meaningful than the most directly comparable GAAP measures which are prepared in accordance with IFRS Accounting Standards.

"Adjusted EBITDA" is a non-GAAP financial measure that the Corporation uses to measure operating performance and borrowing capacity. The most directly comparable GAAP measure to adjusted EBITDA is net income, or net loss, as applicable. The following table details the composition of adjusted EBITDA and its reconciliation to net income, or net loss:

Correction of Quarterly Revenue and COGS – Gross vs Net Accounting

In the first quarter of 2026, management held discussions with its auditors, in respect of the application of IFRS 15 to a sales representation and distribution services contract which began generating revenue in the fourth quarter of 2024 but was material during the year ended December 30, 2025 and is expected to be material in fiscal 2026. Management had previously sought advice on this matter of judgment in September 2024. Following such discussions, it was concluded that IFRS 15 had been incorrectly applied with respect to whether control of the specified goods exists prior to transfer of a customer.  This assessment considered various control indicators, including primary responsibility for fulfilling the promised service and bearer of inventory risk, and concluded the Company acted as an agent under IFRS 15. As a result a portion of the revenue stream under that contract was being reported on a gross revenue basis and ought to be reported on a net revenue basis under IFRS 15 in the fiscal 2025 quarterly consolidated financial statements. There is no impact to the consolidated statements of financial position, changes in shareholders' equity and cash flows, or to consolidated quarterly gross profit or net loss for the current or any historic period. Readers of the quarterly financial statements are cautioned not to rely on the gross revenue presented and are advised to review the tables in the MDA which detail the impact of this change on the interim consolidated statements of loss and comprehensive loss for each financial period and line items affected. Future filings of the interim financial statements will contain the noted adjustments in the comparative financial statements as stated in the MDA.

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation. These statements relate to expectations regarding future events or Big Rock's future performance based on certain assumptions made by Big Rock. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are not facts, but only predictions based on information presently available and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely", "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

This press release contains forward-looking statements pertaining to: Big Rock's continued focus on innovation and co-creation of new products with the Corporation's strategic partners; the expectation that the Corporation will capitalize on increased market demand in certain product categories to enable the Corporation to gain market share; and other similar statements.

With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things:

• the duration and impact of tariffs currently in effect and that such tariffs will remain in effect unchanged;
• impacts of the BCGEU strike on the Corporation;
• markup rates applied by the Alberta Gaming, Liquor and Cannabis Commission ("AGLC");
• anticipated cost increases in Big Rock's production and supply chain;
• volumes in the next fiscal year will remain constant or continue to increase;
• there will be no material change to the regulatory environment in which Big Rock operates;
• there will be no material supply issues with Big Rock's vendors;
• seasonal fluctuations in demand; and
• Big Rock can and will execute its business plans and strategies.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the risk factors set out in the Corporation's annual information form for the year ended December 30, 2025 which is available on SEDAR+ at www.sedarplus.ca and also include, but are not limited to:

• risks related to Big Rock's credit facility with ATB;
• the inability to grow demand for Big Rock's products;
• the inability to execute its product innovation strategy and to introduce such products in the volumes necessary to fulfil its expectations;
• changes to the duration and/or impact of tariffs currently in place, including any impacts on general market demand;
• risks related to unanticipated changes to AGLC's mark-up rates;
• the risk that Big Rock may not have an increase in market demand or market share;
• the risk that Big Rock may lose co-packing contract volumes or the anticipated benefits of co-packing production;
• the risk that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses, won't help the Corporation continue to improve its financial results and strengthen its balance sheet;
• the risk that Big Rock may not realize operational efficiencies or margin growth;
• the risk that Big Rock may not have sufficient cash flows to cover forecasted expenses or return to profitability; and
• the risk that Big Rock may not be in compliance with its financial covenants for the next 12 months.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements contained herein speak only as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

In 1985, Ed 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, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us 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, Alberta, British Columbia and Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit www.bigrockbeer.com

Updates: Changes have been made to dates in the "Additional information" and "Correction of Quarterly Revenue and COGS" sections.

SOURCE Big Rock Brewery Inc.