CALGARY, AB, Aug. 14, 2024 /CNW/ - Big Rock Brewery Inc. (TSX:BR) ("Big Rock" or the "Corporation") today announces its financial results for the three and six-month periods ended June 30, 2024.   Financial Summary For the three months ended June 30, 2024, compared to the three months ended June 30, 2023, the Corporation reported: net revenue declined by 2.8% to $12.3 million primarily due to reduced co-packing activity; wholesale sales volumes down 7.2% to 40,519 hectolitres ("hl") compared to 43,660 hl; operating loss increased to ($0.7 million) from operating income of less than $0.1 million; net income increased to $0.2 million from a net loss of ($0.3 million); and Adjusted EBITDA decreased to $0.2 million from $1.2 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures". For the six months ended June 30, 2024, compared to the six months ended June 30, 2023, the Corporation reported: net revenue decreased 9.6% to $20.9 million from $23.2 million due to reduced co-packing activity and softer wholesale volumes; wholesale sales volumes down 5.9% to 72,871 hl compared to 77,438 hl; operating loss increased to ($3.0 million) from ($0.1 million); net loss increased to ($2.9 million) from ($0.6 million); and Adjusted EBITDA decreased to ($1.3 million) from $1.9 million. Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures". David Kinder, Big Rock's President and Chief Executive Officer noted, "While financial results during the quarter reflected the headwinds we faced as an organization (softened demand associated with a more temperate Spring, restrictions on water and the absence of some contracted co-packing volumes), we have been busy making what we believe are material improvements to our business and cultivating relationships that will provide foundational product volumes upon which we can continue to build our business."  Mr. Kinder commented further, "Armed with the efficiencies from our operational realignment and capital investments, the new volumes and our continued commitment to introducing new products via our innovation pipeline, we are confident in our ability to improve our financial results going forward." Summary of Results $000, except hl and per shareamounts Three months ended June 30 Six months ended June 301 2024 2023 2024 2023 Wholesale sales volumes (hl) (1) 40,519 43,660 72,871 77,438 Gross product revenue $    15,792 $    17,018 $    27,080 $    30,657 Net revenue 12,344 12,702 20,926 23,153 Cost of sales 8,218 8,904 15,063 16,392 Adjusted EBITDA (2) 165 1,188 (1,308) 1,889 Operating income (loss) (667) 43 (2,966) (101) Net income (loss) 220 (340) (2,853) (595) Net income (loss) per share (basic and diluted) $        0.03 $     (0.05) $      (0.41) $     (0.09) (1)      Excludes co-packing/contract volumes due to the nature of the agreements. (2)      Non-GAAP financial measure. See "Non-GAAP Measures". In 2023 Big Rock embarked on a strategy of, where possible, balancing production and sales between quarters to allow for a reduction of operating costs. Reduced co-packing contract volumes made this difficult during the last half of 2023 and during the first half of 2024 similar challenges were encountered. These challenges were compounded by the implementation of a capital expenditure program featuring the replacement of the equipment used to bind canned products (to comply with Canada's ban on single-use plastics) and the equipment used to pack and variety-pack boxed products. Management continues to work with co-packing partners for the purpose of introducing volumes and was recently successful in securing a three-year contract with a strategic partner to produce an estimated 50,000 hl or more annually. These volumes are expected to allow for a more balanced schedule and replace the volumes lost during 2022 due ...